Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698944494578.pdf (Zambia)
REPUBLIC OF ZAMBIA REPORT OF THE COMMITTEE ON LOCAL GOVERNMENT ACCOUNTS ON THE REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF ACCOUNTS OF LOCAL AUTHORITES FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER, 2021 FOR THE SECOND SESSION OF THE THIRTEENTH NATIONAL ASSEMBLY Published by the National Assembly of Zambia List of Acronyms COVID-19 WDC LGEF EPB CBD GIZ LDF PSMD NIPA DACO CFC ACC CRB BoQ TLB NHIMA ZRA NAPSA FIRESUZ ZEMA IDP DMMU ZCTU ZULAWU ZAFFICO LGSC LPPA EPB LASF NRFA RDA ITT PACRA LAAPS DARP USAID ICT IPSAS UNIDO OSR ABSA LS-MFEZ MLGRD MLN Corona Virus Disease of 2019 Ward Development Committee Local Government Equalisation Fund Environmental Project Brief Central Business District Deutsche Gesellschaft fur Internationale Zusammenarbeit Land Development Fund Public Service Management Division National Institute of Public Administration District Agricultural Coordinating Officer Copperbelt Forestry Co-operation Anti- Corruption Commission Class Room Block Bill of Quantities Tractor Loader Backhoe National Health Insurance Management Authority Zambia Revenue Authority National Pensions Scheme Authority Fire Service Union of Zambia Zambia Environmental Management Agency Integrated Development Plan Disaster Management and Mitigation Unit Zambia Congress of Trade Unions Zambia United Local Authority Workers Union Zambia Forestry and Forest Industries Corporation Local Government Service Commission Lusaka Province Planning Authority Environmental Project Brief Local Authorities Superannuation Fund National Road Fund Agency Road Development Agency Invitation To Treat Patents and Companies Registration Agency Local Authorities Accounting Policies Draft Annual Report Paragraph United States Agency for International Development Information Communication Technology International Public Sector Accounting Standards United Nations Industrial Development Organisation Own Source Revenue Amalgamated Banks of South Africa Lusaka South- Multi Facility Economic Zone Ministry of Local Government and Rural Development Ministry of
 Lands and Natural Resources ii ZNS CDF CDFC PPCR Zambia National Service Constituency Development Fund Constituency Development Fund Committee Pilot Project for Climate Resilience iii TABLE OF CONTENTS PART 1 Foreword Composition of the Committee 1 i 1 Responses from the Secretary to the Treasury on the Comments by the Auditor General Introduction Scope of Audit Constraints a) Transport b) Information and Communications Technology Equipment Audit Methodology Audit and Reporting Process Establishment and Mandate of Councils Governance - The Council Management Sources of Funds Information and Communication Technology Financial Statements 1 1 2 2 2 3 3 4 4 5 5 6 7 7 PART II Responses by the Accounting Authorities Chadiza Town Council Chama Town Council Chifunabuli Town Council Chikankata Town Council Chinsali Municipal Council Chipata City Council Chipili Town Council Choma Municipal Council Chongwe Municipal Council Gwembe Town Council Ikelenge Town Council Itezhi Tezhi Town Council Kabwe Municipal Council Kafue Town Council Kalulushi Municipal Council Kapiri Mposhi Town Council Kasama Municipal Council Kasempa Town Council Kasenengwa Town Council Kitwe City Council iv 13 13 20 29 38 45 60 68 78 92 100 111 131 140 149 157 173 180 200 207 213 Livingstone City Council Luangwa Town Council Luanshya Municipal Council Lukulu Town Council Lusaka City Council Luwingu Town Council Mafinga Town Council Mazabuka Municipal Council Mbala Municipal Council Mitete Town Council Mongu Municipal Council Monze Town Council Mporokoso Town Council Mpulungu Town Council Mulobezi Town Council Mungwi Town Council Mwandi Town Council Nakonde Town Council Nalolo Town Council Namwala Town Council Nchelenge Town Council Ndola City Council Ngabwe Town Council Nsama Town Council Nyimba Town Council Rufunsa Town Council Senanga Town Council Serenje Town Council Shiwang’andu Town Council Siavonga Town Council Sinazongwe Town Council Vubwi Town Council Part III Local Tour Conclusion Appendix I List of
 National Assembly Officials Appendix II Outstanding Issues Report v REPORT OF THE COMMITTEE ON LOCAL GOVERNMENT ACCOUNTS ON THE REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF ACCOUNTS OF LOCAL AUTHORITIES FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER, 2021 FOR THE SECOND SESSION OF THE THIRTEENTH NATIONAL ASSEMBLY.
Composition of the Committee The Committee consisted of: Mr Darius Mulunda, MP (Chairperson); Rev Dr Given Katuta Mwelwa, MP (Vice Chairperson); Dr Chitalu Chilufya, MP; Mr Misheck Mutelo, MP; Mr Masauso Tembo, MP; Mr Harry Kamboni, MP; Mr Misheck Nyambose, MP; Mr Wesley Kolala, MP; Mr Lukas Simumba, MP; and Mr Kabaso Kampampi, MP.
PART 1 RESPONSES FROM THE SECRETARY TO THE TREASURY ON THE COMMENTS BY THE AUDITOR GENERAL The Secretary to the Treasury submitted that comments of the Auditor General on the Accounts for the Local Authorities for the Financial Year Ended 31st December, 2021 were appreciated.
The process of interacting and communicating with the council principal officers whose accounts were audited was acknowledged as it provided an opportunity for the principal officers to clarify and take corrective action on the audit findings so that matters were resolved during the process of the Audit.

Outlined below is the Secretary to the Treasury’s submission on the said accounts.
Paragraph 1 Introduction The Report had been produced in accordance with the Provisions of Article 250 of the Constitution of Zambia (Amendment) Act, No.

2 of 2016, the Local Government Act, No.

2 of 2019, the Constituency Development Fund Act, No.

11 of 2018 and the Public Finance Management Act, No.1 of 2018.

Article 250 (1) (a) to (d) mandated the Auditor General to audit; i. ii.

iii.

iv.
the accounts of State organs, State institutions, Provincial Administration, Local Authorities and institutions financed from public funds; the accounts that related to the stocks, shares and stores of the Government; financial and value for money audits, including forensic audits and any other type of audit, in respect of a project that involved the use of public funds; and ascertain that money appropriated by Parliament or raised by the Government and disbursed;    had been applied for the purpose for which it was appropriated or raised; was expended in conformity with the authority that governed it; and was expended economically, efficiently and effectively.
1 The Report contained paragraphs on fifty-three Local Authorities.

Treasury Response The Secretary to the Treasury submitted that the Treasury appreciated the fact that the Auditor General reviewed the application of funds for the purposes for which they were disbursed, the conformity with applicable laws and the efficiency with which they were used.

In doing so, the audit covered all aspects of public spending and highlighting any irregularities therein.
The Treasury would continue to review and sensitise all Local Authorities in Public Finance Management Legislation in order to enhance compliance.

The Treasury would, through the Ministry of Local Government and Rural Development, continue to monitor adherence to Public Finance Management Legislation in all Local Authorities.
Observations and Recommendations The Committee notes the response and will await a progress report on the realisation of measures to enhance financial management in Local Authorities.

Paragraph 2 Scope of Audit The audit scope covered the accounts and records of Local Authorities for the Financial Year Ended 31st December, 2021 and, in some cases, observations that required updating were reported as at 30th September, 2022.
Treasury Response The Secretary to the Treasury submitted that the audit scope adopted in auditing Local Authorities was appreciated.

The period covered up to 30th September, 2022 gave the Treasury an insight on adherence levels with regard to laid down laws and regulations.

Committee’s Observations and Recommendations The Committee notes the response on the matter.
Paragraph 3 Constraints Transport a) The Office had presence in all the ten provinces in the country and the nature of the operations required travelling to all districts in the country including far flung areas with bad terrains.

During the period under review, the Office of the Auditor General faced a challenge of inadequate and aging fleet of motor vehicles required for use in executing the mandate as most of the vehicles were procured between 2007 and 2015.
Consequently, this negatively impacted the targeted time of completing the audit activities.

2 Treasury Response The Secretary to the Treasury submitted that the Treasury noted the presence of Auditor General’s Office in all the ten provinces and the challenges it faced when carrying out audits in far flung areas.

The Treasury had facilitated the procurement of fifteen 4X4 Motor vehicles for the Office of the Auditor General for the Financial Year Ended 31st December, 2022.
Further, the Treasury would encourage the Office of the Auditor General to budget for future procurement of motor vehicles in order to alleviate this problem.

Committee’s Observations and Recommendations The Committee notes the response on the matter.

Information and Communications Technology Equipment b) During the period from 2017 to 2021, the number of staff increased from 524 to 620.

This resulted in the need to provide Information and Communications Technology (ICT) equipment for the new staff.
Although the Office received support from the Government and Cooperating Partners in ICT, the gap still existed.

Treasury Response The Secretary to the Treasury submitted that the Treasury took note of the support from the Government and Cooperating Partners in Information and Communications Technology (ICT) and expressed their gratitude.

The Treasury also took note of the gap existing in ICT and in collaboration with Smart Zambia would determine the extent of the gap and work towards bridging it.
Committee’s Observations and Recommendations The Committee notes the response on the matter.

Paragraph 4 Audit Methodology In the execution of the audit, programmes were designed to give reasonable assurance on the utilisation and management of public resources.

The programmes included test checks, inspections and examination of accounting and other records maintained by the public officers entrusted with handling public resources.
To ensure optimal utilisation of resources at the Auditor General’s disposal, a risk-based audit approach was used.

Treasury Response The Secretary to the Treasury submitted that the Audit Methodology adopted in auditing Local Authorities ensured that the objective of ascertaining compliance to Public Finance Management regulations in the management of public resources was achieved.
The use of Risked Based Audit Approach by Auditor General would ensure that efforts from the Treasury and other stake holders were directed at areas that needed interventions in order to enhance the Control Environment.

3 Committee’s Observations and Recommendations The Committee notes the response on the matter.

Paragraph 5 Audit and Reporting Process The reporting process involved three major stages.
The first stage was where a preliminary query was issued to the Principal Officer and was required to be responded to within ten days.

The second stage was where an interim management letter was sent to the Principal Officer and copied to the Controlling Officer and was required to be responded to within fifteen days.
The third stage was where the final management letter Draft Annual Report Paragraph (DARP) was issued to the Controlling Officer and was to be responded to within three days to confirm the correctness of the facts.

At every stage where responses received were satisfactory, amendments were made accordingly.

Where the findings were not resolved, the DARPs were consolidated in the Report of the Auditor General on the audit of Accounts of Local Authorities for the period under review.
Treasury Response The Secretary to the Treasury submitted that the Treasury took note of the three major stages in the reporting process adopted by the Auditor General.

The process accorded Local Authorities time to engage auditors during the audit process in order to resolve some of the issues raised.

During this process, Town Clerks or Councils Secretaries could intervene and put in place measures to prevent the escalation of the preliminary queries.
The Treasury had communicated to all the Controlling officers and Principal Officers the various stages of the audit and to further urge them to take advantage of the time given to have preliminary audit queries resolved.

Committee’s Observations and Recommendations The Committee notes the response on the matter.

Paragraph 6 Establishment and Mandate of Councils Councils were established under Article 152 (3) of the Constitution of Zambia (Amendment) Act No.
2 of 2016 read together with the Local Government Act, No.

2 of 2019.

The mandate of the Councils was the delivery of basic social and economic services to the people as set out in the Second Schedule of the Act which included, among others, power to make by-laws and regulations, imposition of levies, fees and other charges and to formulate local policies to promote, guide and regulate development in the district.
Treasury Response It was submitted by the Secretary to the Treasury that the Treasury took note of the mandate of Local Authorities and the various responsibilities they had to achieve the given mandate as this 4 had a direct effect on the performance of respective towns and districts.
The Treasury was in the process of developing guidelines that would streamline the operations of the Department of Local Government under the Office of the Accountant General in order to enhance the monitoring of local authorities.

Further, the Ministry of Local Government and Rural Development had incorporated in their Annual Work Plan quarterly inspection of local authorities, the reports of which were submitted to their Controlling Officer for further action.
Committee’s Observations and Recommendations The Committee notes the response on the matter.

Paragraph 7 Governance - The Council In accordance with Article 153 of the Constitution of Zambia (Amendment) Act, No.

2 of 2016, Councils consist of: elected Mayor or Council Chairperson; elected Ward Councillors; and i. ii.

iii.

not more than three chiefs representing chiefs in the district, elected by the chiefs in the district.
The term of a Council was five years commencing from the date the Councillors were sworn into office after a general election and ending on the date Parliament was dissolved.

Treasury Response The Secretary to the Treasury submitted that the Treasury took note of Corporate Governance existing at local authorities which was regulated by Article 153 of the Constitution of Zambia (Amendment) Act, No.

2 of 2016.
2 of 2016.

This created a system of rules and practices that determined how local authorities would operate and align interests of all stakeholders.

Committee’s Observations and Recommendations The Committee notes the response on the matter.
Paragraph 8 Management a) City or Municipal Council The operations of a City or Municipal Council was the responsibility of the Town Clerk who was the Principal Officer (Chief Executive Officer) and was assisted by Directors responsible for Finance, Planning, Human Resource and Administration, Legal Services, Housing, Engineering Services and Public Health.
Town Council b) The operations of a Town Council are the responsibility of the Council Secretary who is the Principal Officer (Chief Executive Officer) and is assisted by Council Treasurer, Director of Works, Chief Human Resource Officer and District Planning Officer.

5 Treasury Response It was submitted by the Secretary to the Treasury that the Treasury took note of the management of local authorities.
The effective and efficient management of these institutions would result in improved overall quality of life for the people residing in these towns and districts.

The Treasury would devise a monitoring mechanism of the staff compliments in these institutions through Local Government Commission to ensure that at all times all positions were filled.

Committee’s Observations and Recommendations The Committee notes the response on the matter.
Paragraph 9 Sources of Funds Under the Constitution of Zambia (Amendment) Act No.

2 of 2016, a local authority is competent to levy, impose, recover and retain local taxes.
A local authority may make bylaws to impose a levy on leviable persons owning or occupying property or premises situated within the area of the local authority, leviable persons carrying on a business, trade or occupation within the area of the local authority or the purchase or sale of a commodity within the area of the local authority.
The Council also receives funding through national support in form of Local Government Equalisation Fund (LGEF), Constituency Development Fund (CDF) and any other grants as the Government may issue.

Treasury Response The Secretary to the Treasury submitted that the Treasury took note of various sources of funds for local authorities.

The Treasury through support from USAID- Local Impact Project, was training Muchinga, Central and Eastern Province in areas of revenue collection and management.
The programme further included: i. ii.

iii.

iv.

training of revenue collectors in ways of ensuring that all the revenues for local authorities were collected and accounted; training in cash management to improve the efficiency with which cash was managed; training in financial reporting to build capacity and skill in areas of financial reporting; and training in revenue focusing and budgeting.

The Treasury would then roll out this programme to the other provinces beginning third quarter of 2023.
In order to further meet the financial plans of local authorities, the financing for Year Ended 31st December, 2022 was funded at 100 per cent by the Treasury for both Local Government Equalisation Fund (LGEF) and Constituency Development Fund (CDF).

6 Committee’s Observations and Recommendations The Committee notes the response on the matter.
Paragraph 10 Information and Communication Technology The local authorities operated various Information and Communication Technology (ICT) systems to manage payroll, billing and preparation of financial statements such as Dove, Palmsoft and Baxtel.

However, the councils were not using a uniform system but were using standalone systems which were not integrated.

Consequently, there was delay and lack of uniformity in the production of reports.
Further, this caused challenges in cases where key officers were transferred between councils.

Treasury Response The Secretary to the Treasury submitted that the Treasury took note of the challenges resulting from the use of standalone systems and lack of uniformity in the production of reports.

In overcoming this challenge, the Treasury had taken the following steps: i. ii.

iii.
iii.

Issued the Cash Basis Local Authorities Accounting Policies (LAAPS) on 8th October, 2019 and an amendment was issued on 1st January, 2023, guiding the production of Financial Reports.

The Policies among other things stipulated the timelines, format and the content of financial reports; Procurement of a standardised information system (Navision) and it would be implemented in 2024.

Developing Accrual Basis LAAPS to be implemented in 2027.
Committee’s Observations and Recommendations The Committee notes the response on the matter.

Paragraph 11 Financial Statements Section 45 (1) and (2) of the Local Government Act No.
2 of 2019 requires that as soon as practicable, but not later than three months after the financial year, a local authority should submit to the Minister a report concerning the activities of a local authority during the financial year and the report should include information on the financial affairs of a local authority and they should be appended to that report; i. ii.

iii.
iii.

an audited statement of financial position; an audited statement of comprehensive income, and other information that the Minister may require.

Although the local authorities submitted financial statements on time, in most cases, the figures in the financial statements submitted were not supported with underlying records.
7 Treasury Response It was submitted by the Secretary to the Treasury that the Treasury took note of the submission of financial statements with figures not supported by underlying records.

The Treasury developed a standard Financial Reporting Framework (Local Authorities Accounting Policies) which were adopted in 2018.
The framework among other things provided for standard formats for the preparation of financial statements, the minimum statements to be produced and the rules that governed the preparation of financial reports (Cash Basis IPSAS).

The Treasury had since embarked on building capacity in the effective implementation of the Financial Reporting Framework.
Further, a Treasury and Financial Management Circular would be issued compelling Local Authorities to be submitting quarterly and annual reports to the Treasury so that these reports were monitored for compliance.

Committee’s Observations and Recommendations The Committee notes the response on the matter.
Recommendations To address the weaknesses identified in this report, the Auditor General recommended the following: In order to improve Public Financial Management and ensure that the local authorities were operating within the Financial Management and Accounting Framework as set out in the Constitution of Zambia (Amendment) Act No.

2 of 2016, Public Finance Management Act No.

1 of 2018, Public Procurement Act No.

8 of 2020, Appropriations Act of 2020, the Local Government Act No.
2 of 2019, the Constituency Development Fund Act No.

11 of 2018 and any other relevant laws and regulations, the following were recommended: i. the Controlling Officer and Principal Officers must ensure that revenue collection and expenditure were appropriately planned and controlled.
This should be done by: • • • • • • adhering to relevant laws, regulations, circulars, and minutes; establishing and maintaining an effective, efficient, and transparent system of financial and risk management as well as adequate and robust internal controls, safeguarding and managing prudently public resources; taking effective and appropriate steps to collect revenues due to Councils that are under their charge; prevention of irregular or wasteful expenditure, misapplication of funds, theft or loss resulting from negligence or criminal conduct; taking immediate, effective, and appropriate disciplinary steps against erring office holders in the local authorities under their charge; and taking immediate and appropriate action on internal and external audit observations and recommendations.
ii.

The general revenue collected by appointed agents on behalf of local authorities should be promptly brought to account; 8 iii.

iv.

v. vi.

vii.

viii.

ix.

x. xi.
The Controlling Officer should explore ways of assisting local authorities in updating the valuation rolls timely; The Controlling Officer and Principal Officers should ensure that project funds under CDF and LGEF are properly managed in accordance with guidelines; The Controlling Officer and Principal Officers should ensure that there is strict adherence to procurement procedures and contract provisions; The Controlling Officer and Principal Officers should ensure that dumpsites are properly managed; The Controlling Officer and Principal Officers must ensure that all the assets under their charge are appropriately secured and insured; The Controlling Officer and Principal Officers must ensure that all taxes and other statutory contributions are deducted and timely remitted to the respective institutions; The Controlling Officer must ensure that local authorities use a standardised and integrated ICT system for ease of reporting and management of information; The Controlling Officer and Principal Officers must ensure that local authorities prepare and submit financial statements together with the underlying records for audit on time; and The Controlling Officer and Principal Officers must ensure that local authorities maintain their buildings regularly.
Treasury Response Audit Comment The Controlling Officer and Principal Officers must ensure that revenue collection and expenditure are appropriately planned and controlled: -  Adhering to relevant laws, regulations, circulars, and minutes;  Establishing and maintaining an effective, efficient, and transparent system of financial and risk management as internal controls, well as adequate and safeguarding and managing prudently public resources; robust  Taking effective and appropriate steps to collect revenues due to Councils that are under their charge;  Prevention of irregular or wasteful expenditure, misapplication of funds, theft or loss resulting from negligence or criminal conduct; immediate, appropriate disciplinary steps against erring office holders in the local authorities under their charge; and effective, and  Taking  Taking immediate and appropriate action on internal and external audit observations and recommendations.
The general revenue collected by appointed agents on behalf of local authorities should be promptly brought to account; 9 Impact Project was cash management in order to improve Ways of ensuring that all the revenue Treasury Response The Treasury with the support from USAID - Local training Local Authorities in the following areas: - i. was collected and accounted for; ii.

the efficiency with which cash was managed; iii.

skill in areas of financial reporting; and iv.

revenue focusing and budgeting.


One Hundred Revenue Collectors from the following seven districts had been trained so far:Nyimba, Petauke, Sinda, Katete, Lusangazi, Chandiza and Chipangali financial reporting to build capacity and Further, Audit Committees in all Local Authorities had been trained with the objective of enhancing monitoring of these institutions.
The Treasury with the support from USAID- Impact Project was training all Revenue Collectors in Local authorities in various ways of ensuring that Revenue collected was banked and accounted for.
One Hundred Revenue governed successfully teamed up guidelines which Collectors from the following seven districts have been trained: Nyimba, Petauke, Sinda, Katete, Lusangazi, Chandiza and Chipangali The Treasury had encouraged the development in Local of strong control environments Authorities by training all Audit Committees in Local Authorities that would monitor strategies implemented by management to foster a strong control environment.
In ensuring that valuation rolls were updated timely, Local Authorities were directed to share costs of valuers for towns and districts with close proximity.

The directive was given in and 2022 and Chipata, Chipanganani to Kasenengwa undertake the updating of their valuation roll as well as Sinda and Petauke.

In ensuring that CDF and LGEF were properly managed, the Treasury through the Ministry of Local Government and Rural Development issued the expenditure of these funds.
funds had been The approval of CDF decentralised Provincial Local the Government Officers who ensured that all CDF guidelines were followed before approval was made.

Expenditure of LGEF was administered by respective Councils in accordance with the Act which stipulated that 20 percent was spent on capital projects and 80 percent on other services.

Quarterly inspection reports highlighted the adherence to these guidelines.
The reports highlighted the project name, project cost, source of financing and completion period.

The Treasury revised the Public Procurement Act No.8 of 2020, in order to address short comings in the law and ensure an effective, efficient and economic procurement process was adhered to by Public Bodies Section 11 of the Public Finance Management Act, No.
1 of 2018 outlined the general responsibilities of controlling officers and one of which requires controlling officers to ensure that they complied to the public procurement act to The Controlling Officer should explore ways of assisting local authorities in updating the valuation rolls timely; The Controlling Officer and Principal Officers should ensure that project funds under CDF and LGEF are properly managed in accordance with guidelines; The Controlling Officer and Principal Officers should ensure that there is strict adherence to procurement procedures and contract provisions; 10 which stipulated procurement requirements to be followed by all procuring entities.
Further, Treasury had devolved responsibility of clearing contracts to Director of Finance in Provincial Centres to increase the efficiency with which procurement matters were dealt with in Public Bodies.

that dumpsites were properly In ensuring managed, all Local Authorities had been directed to include in their 2023 budget an allocation to cater for fencing of dumpsites.
Further Local authorities had been directed to use part of the 2023 20 per cent capital projects funds under LGEF to purchase compacting machines in order to compact all dumpsites.

Some Councils had already used the 2022 CDF to procure these machines.
So far the following local authorities had procured compacting machines for both solid wastes and dumpsites: - a) Mazabuka; b) Chipata; c) Lundazi; d) Chasefu; e) Petauke; The Treasury in February 2023 commenced the training of officers in local authorities in among other things Asset Management, Revenue Focusing and Budgeting.

The measure was aimed at ensure that all Public Assets effectively and efficiently managed.
This would be monitored through quarterly reports to the Controlling Officer at the Ministry of Local Governments and Rural Development.

The Treasury in 2020 developed a Debt Management Strategy for local authorities to run from 2021 to 2025.

The Strategy provided a framework for local level resource mobilisation and debt management with the objectives of dismantling the existing debt and ensuring that any future borrowing by local authorities was sustainable.
In order to liquidate taxes and other statutory obligations, developed liquidation plans in a manner that ensured that the existing debt was completely dismantled by December 2025.
The Plans outline the amounts authorities local The Controlling Officer and Principal Officers should ensure that dumpsites are properly managed; The Controlling Officer and Principal Officers must ensure that all the assets under their charge are appropriately secured and insured; The Controlling Officer and Principal Officers must ensure that all taxes and other statutory contributions are deducted and timely remitted to the respective institutions; 11 The Controlling Officer must ensure that local authorities use a standardised and integrated ICT system for ease of reporting and management of information; The Controlling Officer and Principal Officers must ensure that local authorities prepare and submit financial statements together with the underlying records for audit on time.
The Controlling Officer and Principal Officers must ensure that local authorities maintain their buildings regularly.

ICT from grants functions standardised to be dismantled annually from the existing debt and the commitments made by respective Local Authorities formed the basis for the allocation of matching the Central Government.

The Treasury was in the process of procuring an off-the-shelf systems (Navision) for all local authorities.

The targeted implementation year was 2024.


The structure of Local and Government Department under Office of the Accountant General was being reviewed.

The new structure would include a position of Principal Accountant in charge of financial reports for Local Authorities.

The office would ensure the Financial Reports were submitted on time through the tracking of production quarterly financial reports.

This would be implemented immediately the review was completed.
The Treasury issued and launched the Public Asset Management Policy on 30th March, 2021.

The Policy under section 2.6, 2.7 and 5.1.10 had guided on the maintenance and re-development of all public asset.

that Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that stipulated measures regarding the recommendations of the Auditor General are actualised without delay.

The Committee will await a progress report on the matter.
Paragraph 29 Recommendations of the Committee on Local Authorities Appendix 3 to the report summarises the status of outstanding issues as at 31st December 2021 for which necessary remedial action is required.

These unresolved issues arise as a result of recommendations that the Committee on Local Authorities made on previous reports of the Auditor General but whose actions had not been undertaken at the date of issuance of this Report.
The outstanding issues form part of the report of Local authorities and Other Statutory Institutions for the financial year ended 31st December, 2021.

12 Treasury Response It was submitted by the Secretary to the Treasury that the comments by the Auditor General were noted.

The Treasury would take deliberate steps in ensuring that the unresolved issues which arose as a result of recommendations that the Committee on Local authorities made on previous reports of the Auditor General were addressed.
A meeting between the Office of the Accountant General, Office of the Auditor General and Office of the Controller of Internal Audit had been set up to find solutions that would address this matter.

Committee’s Observations and Recommendations The Committee notes the response on the matter.
PART II SUBMISSIONS BY THE ACCOUNTING AUTHORITIES Chadiza Town Council Paragraph 12 Audit Findings An examination of financial and other records maintained at the Council for the Financial Year Ended 31st December, 2021 and a physical inspection of selected projects revealed the following to which the Accounting Authority submitted as set out below.

Budget and Income a.


During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K15,515,984 against which amounts totaling K12,047,434 were received and generated resulting in a negative variance of K3,468,550.

See table 1.
See table 1.

Table 1: Budget and Income In addition, amounts totaling K3,269,115 were brought forward, bringing the total funds available to K15,316,549 out of which amounts totaling K12,819,962 were spent leaving a balance of K2,496,587.

13 Management Response The Accounting Authority submitted that the budgeted targets during the financial year under review were not realised due to the following; Local Tax i.
The Council budgeted to collect a total amount of K1,669,228, which was not collected as the valuation roll which was used as a basis for budgeting was not approved.

The tribunal sitting was only held on 30th December, 2021, and approved on 24th November, 2022.

Another component of local taxes was personal levy which the Council budgeted to collect K25,035 but collected K23,281, representing 93 percent collection efficiency.
Committee’s Observations and Recommendations The Committee expresses concern that the Council decided to budget for collection of rates on the unapproved valuation roll.

The Committee finds this unrealistic and unacceptable as the activity was not going to be undertaken in the absence of an approved valuation roll.

In view of this, the Committee urges the Accounting Authority to be proactive and ensure that the said approved valuation roll is actualised without delay.
The Committee will await a progress report on the matter.

Fees and Charges ii.

It was submitted that amounts totaling K953,613 were not collected, out of the budgeted amount of K1,424,020, during the financial year under review, due to the following reasons: a. b. poor response in payment by applicants for residential and commercial plots which were budgeted at K513,500.
However, only K82,135.80 was collected leaving the uncollected balance of K431,364.20; non-payment of other fees and charges associated with plot allocation such as application fees, building inspection fees, scrutiny fees that were budgeted at K892,520, as only K388,270 was collected leaving the uncollected balance of K504,250.

Committee’s Observations and Recommendations The Committee expresses concern that the Council was facing challenges to collect fees and charges relating to plot allocation.
The Committee wonders whether due diligence was undertaken when scrutinising the applicants in order to avoid this situation.

In this regard, the Committee urges the Accounting Authority to put measures in place which will ensure that deserving applicants are identified and allocated plots.
The Committee also urges the Accounting Authority to ensure that all allocated applicants who fail to meet the requirements have the allocated plots withdrawn and re-advertised so that citizens with capacity can be allocated without delay.

The Committee will await a progress report on the matter.

Licences iii.

The low collection of liquor licence fees was due to COVID-19 guidelines which required that bars and night clubs must be closed.
This negatively affected the collection of liquor license fees as many businesses trading in liquor were closed.

14 Committee’s Observations and Recommendations The Committee notes the response on the matter.

Levies iv.

The Council budgeted to collect K1,552,540 but only collected K1,489,123, representing 96 per cent revenue collection efficiency.

Committee’s Observations and Recommendations The Committee notes the response on the matter.
Permits v. The Council budgeted to collect K118,000 but only collected K106,473, representing 90 percent collection efficiency.

Committee’s Observations and Recommendations The Committee notes the response on the matter.

National Support vi.

The Council budgeted to receive K10,669,011 but only received K9,871,966, representing 93 percent as grant support.

The rest was not received.

Committee’s Observations and Recommendations The Committee notes the response on the matter.

b.
b.

Accounting for Revenue Delayed Finalisation of Valuation Roll i.

The Accounting Authority submitted that the Council made its submission on the valuation roll, during the rating tribunal sitting which was held on 30th December, 2021; and the valuation roll was awarded on 24th Novembers, 2022.

The Committee was informed that the Council would ensure that the valuation roll was timely revised in future in order to ensure that a valid valuation roll was always available.
Committee’s Observations and Recommendations The Committee expresses displeasure at the laissez faire attitude adopted by the Accounting Authority on the timely preparation and implementation of the valuation roll, which is critical to the revenue generation of the Council.
The Committee, therefore, urges the Accounting Authority to ensure that the valuation section of the Council is capacitated with necessary resources so that all valuation activities such as rating of properties are enhanced, without fail.

The Committee also urges that the said approved valuation roll is implemented without delay.

The Committee will await a progress report on the matter.

15 ii.

Failure to Collect Revenue Property Rates a.


The Accounting Authority submitted that the failure to collect property rates by the Council was because the Council had no valuation roll as application was submitted in 2020 but the rating tribunal only considered it at its sitting held on 30th December, 2021.

The budgeted amount was in anticipation that the valuation roll would be approved before the beginning of 2021.
Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council budgeted for collection of property rates when the valuation roll was not approved and the rating tribunal meeting only took place in December, 2021.

In this regard, the Committee observes that the Council demonstrated the lack of seriousness on the matter and wonders the motive by the Council when it had a narrow revenue base.
The Committee, therefore, urges the Accounting Authority to be proactive and ensure that realistic budgets are prepared and reviewed periodically.

The Committee also urges the Accounting Authority to strengthen the revenue collection mechanisms and identify other sources of revenue without delay.

The Committee will await a progress report on the matter.

Rental Charges b.

The Accounting Authority submitted that the tenant was still owing an amount of K8,000 at the time of the Audit.
However, the tenant paid the balance on 16th January, 2023.

The Committee was informed that the Council shall ensure that the Valuation Roll was always in place to enforce collection of property rates and that its tenants paid the bills timely.

Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council only collected the balance of the rental charges after the audit process, which the Committee observes, is a clear case of reacting to the audit process.
In view of this, the Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges the Accounting Authority to strengthen the internal control measures at the Council in order to avoid the recurrence of the query.

The Committee will await a progress report on the matter.

c. Management of Payroll and Other Staff Related Matters - Failure to Fill Vacant Positions.
The Accounting Authority submitted that the positions of Deputy Council Treasurer, District AIDS Coordinator, Assistant Internal Auditor remained vacant at the time of the audit as the Local Government Commission had not yet recruited.

The Committee was informed that the vacant positions were submitted to the Local Government Service Commission through quarterly staff returns and that the Commission had since filled up the position of Deputy Council Treasurer.
Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council was only taking action after the audit process.

The Committee, therefore, urges the Accounting Authority to be proactive and re- 16 engage the Local Government Service Commission so that the vacant positions are filled up without delay.

The Committee will await a progress report on the matter.

d. Management of the Local Government Equalisation Fund i.
Delayed Completion of the Construction of an Abattoir The Accounting Authority submitted that the delay to complete the construction of an abattoir was due to failure by the contractor to complete the works within the contract period despite funds being available.

The Committee was informed that the Council terminated the contract and had taken measures to complete the remaining works through force account.
The works which were completed include electrical, fitting of doors and windows; and plumbing and painting, leaving the guard house which was set to be completed in the first quarter of 2023.

The Committee was also informed that the Council will not hesitate to terminate nonperforming contracts and re-tender.

Committee’s Observations and Recommendations The Committee bemoans the failure by the contractor to complete the project, in line with the contract.
The Committee observes that the delayed completion of the projects leads to increased cost of implementing the project.

The Committee also expresses concern at the contract management processes at the Council and how the contractor was identified.

In view of this, the Committee urges the Accounting Authority to put measures in place which will enhance the procurement and contract management processes at the Council, in order to prevent wastage of public resources through abandoned works by contractors.
The Committee also urges that the construction of the Guard House be completed without any further delay.

The Committee will await a progress report on the matter.

Delayed Completion of the Fire Station ii.

The Accounting Authority submitted that the delay to complete the fire station was as a result of failure by the contractor to complete the project within the contract period.
The Committee was informed that the Council terminated the contract on 3rd May, 2022 and Council took over the remaining works immediately, through force account.

The Council has since completed fitting and connecting of pipes to the soak way and septic tank, and glazing.

Only the painting of the building was remaining.

The project was expected to be fully completed within the first quarter of 2023.
Committee’s Observations and Recommendations The Committee bemoans the failure by the contractor to complete the project, in line with the contract.

The Committee observes that the delay in completing the project compromises the quality of fire services offered by the council and subsequently increases the risk of loss of public property, in case of fire outbreak.
17 In view of this, the Committee urges the Accounting Authority to put measures in place which will enhance the procurement and contract management processes at the Council, in order to prevent the recurrence of the matter.

The Committee also urges that all pending works are completed without any further delay.

The Committee will await a progress report on the matter.
e. Management of Constituency Development Fund i. Unimplemented Approved Projects The Accounting Authority submitted that out of the six queried projects, three were canceled based on a resolution of the Constituency Development Fund Committee (CDFC), to allocate resources to the uncompleted 2020 CDF funded projects.

Further, management encountered a challenge of securing an approval, before the works on the proposed projects could commence.
The implementation of the projects commenced and works were at 95 percent complete.

The three projects which were not canceled namely; construction of 1x3 classroom block at Nsandu Primary School, construction of health post at Ngala and construction of health post at Kama, had running contracts and works were at different stages.

The projects were expected to be completed in the first quarter of 2023.
Committee’s Observations and Recommendations The Committee bemoans the failure by the contractor to complete the project, in line with the contract.

The Committee observes that the delayed completion of the projects leads to increased cost of implementing the project.

The Committee also expresses concern at the contract management processes at the Council and how the contractor was identified.
In view of this, the Committee urges the Accounting Authority to put measures in place which will enhance the procurement and contract management processes at the Council, in order to prevent wastage of public resources through abandoned works by contractors.

The Committee also urges that the construction of the Guard House be completed without any further delay.

The Committee will await a progress report on the matter.

Project Management i.


The Accounting Authority submitted that this was a labour based project which required the community to contribute 25 percent upfront materials before the project could commence, which was not done in time.

The outstanding works included completion of roofing, fittings and fixtures, ancillary works and finishes.

The Committee was informed that all of the outstanding works highlighted in the Report of the Auditor General had been completed.
However, only painting and glazing works were pending and would be completed within the first quarter of 2023.

Committee’s Observations and Recommendations The Committee expresses concern at the delayed completion of the laboratory, thereby denying 18 the learners a much needed science learning facility.

In this regard, the Committee urges the Accounting Authority to be proactive and ensure adequate allocation of funds to projects, before implementation.
The Committee also urges that projects should be fully contracted to avoid dependency on community participation.

The Committee further urges that the project must be completed without delay.

The Committee will await a progress report on the matter.

 Delayed Completion of Construction of Market Shelter The Accounting Authority submitted that this was a labour based project which required the community to contribute upfront materials but could not do in good time.
It was submitted that the remaining works included roofing, building of concrete tables; and fixtures and fittings.

The Committee was informed that all the outstanding works cited by the Auditor General had since been completed and awaiting handover.
Committee’s Observations and Recommendations The Committee expresses concern at the delayed completion of the market shelter and therefore, urges the Accounting Authority to be proactive and ensure adequate allocation of funds to projects, before implementation.

The Committee, however, resolves to close the matter subject to audit verification.
 Construction of Mangwe Health Post The Accounting Authority submitted that this was a labour based project which required the community to contribute upfront materials but could not do in good time.

It was submitted that the remaining works included glazing, fixtures, fitting of doors, construction of spoon drain and painting.

The Committee was informed that all the outstanding works cited by the Auditor General had since been completed and awaiting handover.
Committee’s Observations and Recommendations The Committee expresses concern at the delayed completion of the health post and therefore, urges the Accounting Authority to be proactive and ensure adequate allocation of funds to projects, before implementation.

The Committee, however, resolves to close the matter subject to audit verification.
f. Management of Liabilities - Failure to Remit Statutory Obligations The Accounting Authority submitted that the non-remittance of statutory contributions had been due to liquidity challenges that the Council was facing.

The Committee was informed that in order to address the matter, the Council had taken the following measures: i. Zambia Revenue Authority ( ZRA) Signed a Memorandum of Understanding (MoU) with ZRA to make monthly remittances of Ten Thousand Kwacha.

19 ii.
19 ii.

National Pension Scheme Authority (NAPSA) Engaged National Pension Scheme Authority to enter into a Memorandum of Understanding, to commence remitting arrears in October 2023. iii.

Zambia United Local Authorities Workers Union (ZULAWU) Settled the outstanding amount with ZULAWU in full.

iv.

Local Authorities Superannuation Fund (LASF) Not yet engaged LASF on the settlement of arrears.
Committee’s Observations and Recommendations The Committee observes with concern that the Council is not prioritising the remitting and dismantling of statutory obligation arrears.

The Committee finds this unacceptable and urges the Accounting Authority to put measures in place which will ensure that statutory obligations are remitted timely and arrears dismantled accordingly.

The Committee will await a progress report on the matter.
Chama Town Council Audit Finding Paragraph 13 An examination of accounting and other records maintained at the Council for the Financial Year Ended 31st December, 2021 and physical inspection of selected projects revealed the following: Budget And Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K13,599,128 against which amounts totaling K13,534,316 were received and generated resulting in a negative variance of K64,812.

See table 1 below.
See table 1 below.

Table 1: Budget and Income 20 A review of records provided in relation to the revenue collection efficiency of various local taxes, revealed that the Council only managed to generate combined revenue of K627,423 against the budgeted amount of K931,692, resulting in an under-collection of K304,206 representing 32 per cent of inefficiencies in revenue collections as indicated in table 1.2 below.
Table 1.2: Budgeted Local Taxes and Actual Income Management Response The Accounting Authority submitted as set out below.

i.

Local Taxes: The under collection of K43,276 was as a result of non-payment of personal levies for civil servants and employees of business houses in the district.

ii.

Fees and Charges: The under collection of K319,326 was because the Council did not offer land after receiving advice from the Muchinga Provincial Planning Authority to re-plan the targeted area.

iii.
iii.

Licences: The under Collection of K22,160 was due to over budgeting, on the issuance of Firearm blue book Licences.

iv.

Levies: The over collection of K112,221 was due to the underestimation of the anticipated collection of levies in the 2021 budget.

v. Permits: The over collection of K9,855 was due to imposed penalty charges on the businesses which were not complying with regulations.

vi.

Other Receipts: K41,520 was received from ZESCO for a way leaf.
21 The Committee was informed that the council had constituted a revenue task force team to follow up defaulting customers on the payment of local taxes.

The Committee was also informed that the Council was updating the business register to ensure that new businesses were captured to broaden the revenue base and avoid under estimation of income.

The Committee was further informed that the Council had embarked on a community sensitisation programme on the need to pay licences.
Committee’s Observations and Recommendations The Committee finds the over budgeting of Licences and the underestimation of levies unacceptable and urges the Accounting Authority to pay the budgeting process the attention it deserves and be realistic when including revenue streams, in order to guarantee budget credibility.

The Committee also urges the Accounting Authority to expedite the re planning of the land identified for offer to the public.

The Committee will await a progress report on the matter.
Environmental Management – Poor Management of the Dumpsite b.

Operational Matters i.

The Accounting Authority submitted that the district had no machinery to use for compacting or covering the waste with a layer of soil.

However, the Council had planned to procure the machinery through the Constituency Development Funds.

Further, the Council had secured a new dumpsite and all the processes had been done with the Zambia Environmental Management Agency (ZEMA), except for inspection.
The fencing and warning signs would be installed or displayed at the new dumpsite after approval from the ZEMA.

Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to manage a dumpsite, risk the community with the outbreak of diseases, among other health hazards.
The Committee finds this unacceptable and urges the Accounting Authority to ensure that the approval processes with the ZEMA are concluded and the site managed in line with the Environmental Management (Licensing) Regulations Statutory Instrument No.

112 of 2013.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Develop the Integrated Development Plan The Accounting Authority submitted that the Council had made progress in developing the document, which is expected to be finalised by the second quarter of 2023.

The Committee was informed that a team had been set up to ensure that the work was expedited.

Committee’s Observations and Recommendations The Committee finds the delay to prepare an IDP unacceptable as it was in- gloss violation of the Urban and Regional Planning Act, No.
3 of 2015 and had a negative effect on the physical development of the town.

In this regard, the Committee urges the Accounting Authority to ensure that IDP is developed without delay.

The Committee will await a progress report on the matter.

Lack of Fire Fighting and Prevention Services iii.

The Accounting Authority submitted that the Council had written to the Ministry of Local 22 Government and Rural Development requesting for the Fire Tender.
The Committee was informed that the Council had budgeted for the procurement of fire hydrants in the 2023 budget.

Committee’s Observations and Recommendations The Committee finds it unfortunate that the Council lacks fire fighting and prevention services when it was expected to protect life, property and natural resources from damage by fire.
The Committee also expresses displeasure that the Council was making efforts to buy fire hydrants, after the audit process, an indication of laissez Faire adopted by the Council towards the provision of fire services to the Community.

The Committee, therefore, urges the Accounting Authority to prioritise the procurement of fire service equipment and the insurance of fire-fighters, using available resources, without any further delay.

The Committee will await a progress report on the matter.

c. i.
c. i.

Management of Payroll and Other Staff Related Matters Employees Without Requisite Qualifications The Accounting Authority submitted that the Council had advised the affected officers to start sitting for GCE for them to attain the full grade twelve certificates.

The Committee was informed that out of the nine cited officers without grade 12 certificates, only one had registered to sit for grade 12 examinations, in July 2023.
Committee’s Observations and Recommendations The Committee expresses displeasure that officers at the Council did not have requisite qualifications for the positions they were holding.

The Committee contends that this has the potential to compromise the quality of service render by the Council.

In this regard, the Committee urges the Accounting Authority to ensure that all the affected officers acquire the requisite qualifications and that those not willing to do so are regraded accordingly.
The Committee will await a progress report on the matter.

ii.

Failure to Fill Vacant Positions The Accounting Authority submitted that the key positions had since been filled up by the Local Government Service Commission.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges the Accounting Authority to avail supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

Management of Assets - Failure to Insure Motor Vehicle and Motor Bikes d. The Accounting Authority submitted that the Council had set aside some funds to go towards insurance of motor vehicles and motor bikes.
The Committee was informed that the Council had assigned the duties to the transport officer (Deputy Council Secretary) to ensure that all the motor vehicles were insured.

23 Committee’s Observations and Recommendations The Committee expresses displeasure at the failure by the Council to secure its properties.

The Committee finds this risk unacceptable and urges the Accounting Authority to be proactive and put measures in place which will ensure that properties are insured without delay.
However, the Committee resolves to close the matter subject to audit verification.

e. i.

Management of Local Government Equalization Fund Failure to Reimburse Borrowed Funds The Accounting Authority submitted that the Council had developed a liquidation plan through the 2023 budget to ensure that borrowed funds were reimbursed.
The Committee was informed that the Council had also embarked on the process of updating the valuation roll, block making and working on opening a bar and lodge, to enhance revenue collection.

Committee’s Observations and Recommendations The Committee expresses extreme disappointment that the Council could not meet its operational costs within the 80 per cent of the LGEF and other locally generated revenue; and ended up using funds meant for capital projects.
The Committee observes that this could be due to poor management of the Council by the responsible officers.

In this regard, the Committee urges the Local Government Service Commission to take keen interest in the management of the Council by the officers and have their performance appraised so that appropriate action is taken for failure to perform.

The Committee also recommends that the borrowed funds must be reimbursed without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Missing Payment Vouchers The Accounting Authority submitted that the ten missing payment vouchers at the time of the audit, were among the vouchers collected by the Anti-Corruption Commission (ACC), during some investigations.

The Accounting Authority submitted that the missing payment vouchers would be availed for audit once some investigations were concluded by the ACC.
Committee’s Observations and Recommendations The Committee bemoans the failure by the Council to avail supporting documents on the matter.

However, the Committee resolves to await a progress report on the outcome of the investigations and the subsequent availing of supporting documents to the Office of the Auditor General for Audit Verification.

iii.
iii.

Misapplication of Capital Projects Funds The Accounting Authority submitted that the Council had paid back the money amounting to K223,000, sourced from various local revenues such as mast levies and rentals, leaving a balance 24 of K164,879 to be reimbursed through a liquidation plan, in the 2023 Financial Year.

The Committee was informed that the Council would enhance revenue collection to ensure that it did not borrow from the capital account for operations.
The Council had identified other revenue generating projects such as block making, bar and hospitality services (Lodge) which were under renovations.

Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council used funds meant for capital projects on operational costs, denying the community the provision of much needed capital projects.

The Committee observes that this could be due to poor management of the Council by the responsible officers.
In this regard, the Committee urges the Local Government Service Commission to take keen interest in the management of the Council by the officers and have their performance appraised so that appropriate action can be taken for failure to perform.

The Committee also recommends that the borrowed funds must be reimbursed in full, without delay.

The Committee will await a progress report on the matter.

Missing Payment Vouchers Management of Constituency Development Fund f. i.
The Accounting Authority submitted that the five missing payment vouchers at the time of the audit, were among the vouchers collected by the Anti-Corruption Commission (ACC), during some investigations.

The Accounting Authority submitted that the missing payment vouchers would be availed for audit once some investigations were concluded by the ACC.

Committee’s Observations and Recommendations The Committee bemoans the failure by the Council to avail supporting documents on the matter.
However, the Committee resolves to await a progress report on the outcome of the investigations and the subsequent availing of supporting documents to the Office of the Auditor General for Audit Verification.

Failure to Recover Funds from a Contractor ii.

The Accounting Authority submitted that the Council had recovered the funds from the contractor and that the contract had been terminated.
Committee’s Observations and Recommendations The Committee finds the termination of the contract and the delay in implementing the project, unfortunate, as it was likely to increase the cost of the project.

The Committee, therefore urges the Council to undertake due diligence before award of contract to avoid the recurrence of contractor’s failure to mobilise.

The Committee also urges the Accounting Authority to ensure that the project is implemented with delay.
The Committee will await a progress report on the matter.

25 Renovation of Mabinga 1 by 3 Class Room Block (CRB) 1.

The Accounting Authority submitted that the building had been completed and handed over to the school management.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee, however, resolves to close the matter subject to audit verification.

Construction of Mundalanga 1 by 3 CRB 2.

The Accounting Authority submitted that the structure had been completed as per the bill of quantities.

However, there was need to allocate more funds to have the building painted, among other works.
The Committee was informed that the project had a supplementary budget of K40,000 and the contract amount was revised as no upfront materials were provided by the community.

Committee’s Observations and Recommendations The Committee bemoans the delay to implement the project, and observes that this was denying the learners access to quality learning environment.

The Committee also observes with concern, the inadequate funding to complete the project.
In this regard, the Committee urges the Accounting Authority to put measures in place which will enhance project management at the Council.

The Committee also urges that the pending works be fully funded to completion without delay.

The Committee will await a progress report on the matter.

Construction of Mwalala Market 3.

The Accounting Authority submitted that the contractor was told to remobilise and finish the remaining works.

The project was expected to be completed in 2023.


Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that project is completed without any further delay.

The Committee will await a progress report on the matter.

Completion of Luangwa Health Post 4.

The Accounting Authority submitted that the structure had been cleaned of termites and the defects on the screed had been rectified.
Committee’s Observations and Recommendations The Committee resolves to close the matter subject to audit verification.

Drilling of Sixteen Boreholes 5.

The Accounting Authority submitted that the contractor wrote a letter on 23rd August, 2021 for temporal withdraw due to inaccessibility to seven sites and promised to continue with the remaining sites once the areas became accessible.

26 On 26th August, 2021, the Council wrote to the contractor to remobilise and commerce the works.
However, the contractor did not remobilise as directed, and had breached the contractual obligations.

Arising from the aforesaid, on 4th May, 2022, the Council gave an instruction to a private law firm to write a letter to the Zambia Police to assist in tracing the Managing Director of Yelezya Enterpises Limited, because the efforts by the Council lawyers to deliver an official letter to the Managing Director of the said company proved futile.
However, response from the Zambia Police and legal action from the private lawyers were still being awaited.

Committee’s Observations and Recommendations The Committee observes that due diligence was not undertaken when identifying the contractor and that no feasibility study was done on the suitability of the areas here marked for drilling of the boreholes.
In this regard, the Committee urges the Accounting Authority to put measures in place to strengthen the procurement systems in place, to avoid wastage of public resources.

The Committee also urges the Accounting Authority to report the said company to the Zambia Public Procurement Authority for failure to perform and violation of the contract provisions, leading to wastage of public resources.

The Committee also urges that the remaining works be re-tendered and completed without delay.
The Committee will await a progress report on the matter.

6.

Construction of Nkhoka 1 by 3 Secondary Classroom Block, Phase 2 The Accounting Authority submitted that as per the bills of quantities, the following was the scope of work:     concrete works in ring beam; brick works; Roofing; and Ironmongery.

The Committee was informed that all the works had been done as per the BOQ but needed more funding as the project was being implemented in phases.
Committee’s Observations and Recommendations The Committee bemoans the delay to complete the project, and observes that this was denying the learners access to quality learning environment.

The Committee also observes with concern, the phasing of the project and the inadequate funding to complete the works.

In this regard, the Committee urges the Accounting Authority to put measures in place which will enhance project management at the Council.
The Committee also urges that the pending works be fully funded to completion without delay.

The Committee will await a progress report on the matter.

Construction of a Laboratory at Chifunda Day Secondary School 7.

The Accounting Authority submitted that the contractor was on site doing final works such as glazing, fixing the remaining doors, rough casting of outside walls and interior painting.

The project was expected to be completed within 2023 and handed over to the school management.
With regard to the over payment, the Committee was informed that the contractor had since paid back all the overpaid funds.

The Contractor was on site to complete the remaining works.

27 Committee’s Observations and Recommendations The Committee expresses concern at the manner in which this project has been managed by the Council and how the payments were being made.
While it is appreciated that the project was nearing completion, it brings into question how the contractor was identified and works delayed.

It also brings into question why the contractor was being overpaid.

In this regard, the Committee urges the Accounting Authority to institute disciplinary action against the officer(s) who approved the payment.
The Committee also urges the Controlling Officer in the Ministry of Local Government and Rural Development to take keen interest in the management of public resources by the Council.

The Committee will await a progress report on the matter.

Construction of a Bridge at Kadula 8.

The Accounting Authority submitted that the works were done through force account.
The Committee was informed that the construction of Kadula was labour based and the Council did the works through force account and that is the reason why there were no contract forms.

The Committee was informed that the Council had since reimbursed the over payment made on the construction of the bridge.

Committee’s Observations and Recommendations The Committee expresses concern at the manner in which this project has been managed by the Council and how the payments were being made.
While it is appreciated that the project was completed, it brings into question why the over payment was made on the project.

In this regard, the Committee urges the Accounting Authority to institute disciplinary action against the officer(s) who approved the payment.

The Committee will await a progress report on the matter.

g. i.
g. i.

Management of Liabilities Failure to Remit Statutory Obligations The Accounting Authority submitted that the Council had developed a liquidation plan which was included in the 2023 budget.

Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to clear outstanding statutory obligations.

The Committee also observes with concern that this was in gloss violation of workers conditions of service.
In this regard, the Committee urges the Accounting Authority to put measures in place which to broaden the revenue base of the Council.

The Committee also urges the Accounting Authority to ensure that the outstanding liabilities are settled without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Settle Staff Obligations The Accounting Authority submitted that the Council had been operating under liquidity difficulties and seriously struggling to meet its operational costs.

The Committee was informed that the Council had developed a liquidation plan which was included in the 2023 budget.

28 Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to clear staff obligations.
The Committee also observes with concern that this was in gloss violation of workers conditions of service.

In this regard, the Committee urges the Accounting Authority to put measures in place which to broaden the revenue base of the Council.

The Committee also urges the Accounting Authority to ensure that staff obligations are settled without delay.

The Committee will await a progress report on the matter.
Chifunabuli Town Council Paragraph 14 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following; a.
Budget and Income During the period under review, the Council had budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K11,116,290 against which amounts totaling K8,981,495 were received and generated resulting in a negative variance of K2,134,795.

See table 1 below.
See table 1 below.

Table 1: Budget and Income In addition, there was an opening balance of K2,801,822 bringing the total funds available for expenditure to K11,783,317.

As at 31st December, 2021, amounts totaling K8,720,822 had been spent leaving a balance of K3,062,584.
Management Response The Accounting Authority submitted that the under collection of budgeted amount totaling to K2,134,795 was due to the following reasons: 29  Local Taxes The Council management had kept relying on un-updated revenue collection database from commercial undertakings and formal sector personal levy database left in the district after the creation of Chifunabuli as a District in 2018 to collect personal levy payable to the Council.
The Council management finished the process of updating its database for both formal and informal sectors in order to ascertain the payable amounts to the Council in respect of Personal levies.

The Council management distributed personal levy assessment forms to respective Government departments in the District.
Fees and Charges  The Committee was informed that due to delayed commencement of plot numbering in Kakasa township by the Ministry of Lands and Natural Resources, the Council lost revenue amounting to K939,000 of the budget under this category, from Plot Premium Charges and due to poor response received from land developers (from plot applicants) which was very low despite the Council advertising the said plots in print media and other social media platforms.
Additionally, the poor state of the main road which connected the District to other parts of the Province contributed to the Council losing out on the collection of the planned Manganese levy which accounted for K753,000 of the budget under this category.

This caused the Manganese firms failing to transport the merchandise due to their trucks getting stuck.
The Council would only budget for Plot Premium charges when all the processes of land offer had been concluded, particularly the survey and numbering of plots by the Ministry of Lands and Natural Resources.

 Licences The Accounting Authority submitted that due to the outbreak of COVID-19 pandemic, most businesses remained closed during most of the financial year under review.

This resulted in the Council not issuing liquor and other Licences as budgeted for due to restrictions on commercial undertakings.
In view of the effects of the outbreak of COVID-19 pandemic, the Council would endeavour to make realistic revenue provisions under the stated budget line and would also endeavour to always sensitise the community on the importance of paying relevant fees and charges due to the Council in order for the Local Authority to provide meaningful municipal services.
 Levies The Committee was informed that due to the outbreak of COVID-19 pandemic, coupled with depleting fish stocks in Lake Chifunabuli caused most businesses to remain closed during most of the financial year under review.

This resulted in the Council not issuing business permits and other levies as budgeted for due to restrictions on commercial undertakings.
In view of the effects of the outbreak of COVID-19 pandemic the Council would endeavour to make realistic revenue provisions under the stated budget line and Council would also endeavour to always sensitise the community on the importance of paying relevant fees and charges which were due to the Council in order for the Local Authority to provide meaningful municipal services.
30  Permits It was submitted that due to the outbreak of COVID-19 pandemic, most businesses remained closed during most of the financial year under review.

This resulted in the Council not issuing trading permits as budgeted for.
The Committee was informed that in view of the effects of the outbreak of COVID-19 pandemic, the Council would endeavour to make realistic revenue provisions under the stated budget line and Council would endeavour to always sensitise the community on the importance of paying relevant permits that were due to the Council in order for the Local Authority to provide meaningful municipal services.
 Other Receipts It was submitted that the reason for the query was due to the fact that funding from UNICEF meant for the Open Defecation Free programme was not received as budgeted for.

The Council would endeavour to always budget for other receipts whose funding were confirmed in writing by relevant cooperating partners.

 National Support – Local Government Equalisation Fund The Council had budgeted to receive K6,720,000 from the Central Government in form of Local Government Equalisation Fund.
However, the total receipts under the budget line were K6,617,132 during the period under review.

The Council would endeavour to make realistic provisions under the stated budget line in consultation with the Treasury through the Ministry of Local Government and Rural Development.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Failure to Develop an Integrated Development Plan b.

Operational Matters i.

The Accounting Authority submitted that the failure to develop the Integrated Development Plan (IDP) was due to liquidity challenges the Council was facing.

The Council had collected details for both existing and proposed land use for consolidation of the district layout plan.

Partial formation of the local economic development framework had also been done.
Further, the first step of reporting the concept of formulation of an IDP was reported to the full Council meeting Vide Minute No.

PWDRESS/58/08/19 in August, 2019 and solicitation for financial assistance from Tralard to develop the said IDP was also done and funding was received.

It was submitted that the draft IDP for Chifunabuli Town Council was undergoing further editing and content addition and the final copy would be ready within the first quarter of 2023.
31 The Committee was informed that the Council had prioritised the development of the IDP so that it was completed and submitted to the Ministry before 31st March, 2023, as guided by the Ministry of Local Government and Rural Development.

Committee’s Observations and Recommendations The Committee will await a progress report on the finalisation of the IDP.

ii.
ii.

Lack of Fire fighting and Prevention Services The Accounting Authority submitted that the lack of firefighting and prevention services was due to the fact that Chifunabuli Town Council was a newly created Local Authority where the fire section under Engineering Department was yet to be established.
The Committee was informed that a request was made through a letter dated 28th November, 2022 to the Local Government Service Commission requesting for five fire fighters to be sent to Chifunabuli Town Council.

The firefighters would come and provide fire prevention activities such as conducting sensitisation programmes to community members while the Local Authority waited for the fire engine to be sent to the Council by the Ministry of Local Government and Rural Development.
It was submitted that whenever there were emergency cases, Samfya Town Council management was always engaged to help on issues of fire prevention services and conducted sensitisation meetings, usually on a quarterly basis.

Committee’s Observations and Recommendations The Committee bemoans the lack of firefighting services at the Council and urges the Accounting Authority to prioritise the setting up and operationalisation of the unit without delay.
The Committee also urges the Accounting Authority to re-engage the Ministry of Local Government and Rural development on the matter.

The Committee will await a progress report.

iii.

Failure to Service Plots – No Access Roads The Accounting Authority submitted that the failure to service plots was due to resource limitations as out of fifty plots advertised only five were sold out.
The Committee was informed that a request for funding to have the plots serviced was sent to the Ministry of Lands and Natural Resources in 2020, and constant follow-ups were made until a partial approval was granted in November 2022, amounting to K1,380,385.20, for the first phase.

Council would endeavor to make sure that all the necessary processes as stipulated in the Ministry of Lands circular of No.

1 of 1985 were followed before land could be offered to the general public.
Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council proceeded to offer plots without access roads.

In this regard, the Committee urges the Accounting Authority to desist from violating the provisions of the said circular and ensure that plots are serviced without delay.

The Committee will await a progress report on the matter.

32 c. Environmental Management The Environmental Management Act, No.
12 of 2011 states that, “a Local Authority shall designate one or more waste disposal sites or waste collection sites within the waste control area and inform the public within the waste control area of the location of the designated waste disposal and waste collection sites”.

In addition, the Environmental Management (Licensing) Regulations Statutory Instrument No.

112 of 2013 requires that a dumpsite should be enclosed, fenced off and secured from scavenging.

i.
i.

An inspection of the dumpsite carried out in September, 2022 revealed the following:  The Council operated the dumpsite without approval from Zambia Environmental Management Agency (ZEMA).

 The Council did not fence the dumpsite for protection from access by unauthorised persons.

 There were no hazard and safety warning signs at the dumpsite.

 The Council did not compact or cover the waste with a layer of soil thereby exposing the community to health hazards.

See Pictures below.
See Pictures below.

Unfenced dumpsite Management Response The Accounting Authority submitted that the Council reached out to ZEMA and was guided that it was no longer issuing Licences following the enactment of the Solid Waste Regulation and Management Act, No.

20 of 2018 and S (6) 1 read together with S (36) 1 of this act respectively states that: S (6)1 A local authority shall, in accordance with the Constitution, the Local Government Act, No.
2 of 2019 and this Act, manage solid waste and may undertake solid waste management in partnership or association with another local authority, public body or private body.
S (36)1 ‘Except for a local authority, a person shall not provide a solid waste service, or any component 33 of that service, unless that person holds a license or permit granted under this Part, as prescribed by the Minister.’ This placed the Ministry of Local Government and Rural Development on the issuance of Licences and the enforcement of the Solid Waste Regulation and Management Act, No.

20 of 2018.
20 of 2018.

Additionally, the Council submitted that the safety warning signs had since been erected and waste was constantly covered with soil.
The Council also submitted that the failure to fence-off the dumpsite had been due to the fact that the land being used was private land belonging to one of the residents of Chifunabuli district, and the said dumpsite which was sitting on this private land was being used on a temporal basis while the Council was awaiting the development, survey and numbering of 2,585 plots, among them, the designated dumpsite, which would have all the standard requirements.
The Council would always endeavour to abide by the provisions of the Environmental Management Act, No.

12 of 2011 in the execution and provision of public health services to the communities of Chifunabuli by ensuring that the environment and the lives of community members were safeguarded.
Committee’s Observations and Recommendations The Committee sternly cautions the Accounting Authority to desist from taking action after the audit process and urges that the dumpsites must be designated without any further delay.

The Committee will await a progress report on the matter.

ii.

Lack of waste holding bay There were no waste holding bays at Mwewa Market.

As a result, waste generated was dumped indiscriminately posing a danger to public health.

See pictures below.
See pictures below.

Waste dumped indiscriminately at Mwewa Market 34 Management Response The Accounting Authority submitted that it had taken action by prioritising the construction of a refuse holding bay at the said Mwewa market and that funding for the construction of the refuse holding bay at Mwewa market had since been secured through the 20 per cent capital projects component funding in 2023, after the approval of the annual budget.
Committee’s Observations and Recommendations The Committee bemoans the Laissez Faire attitude adopted by the Council of the management of waste.

The Committee observes that this could lead to outbreak of diseases.

The Committee, therefore, urges the Accounting Authority to be proactive and ensure that the waste holding bay is constructed without delay.

The Committee will await a progress report on the matter.

d. Management of Payroll and Other Staff Related Matters Failure to Fill Vacant Positions i.
The Accounting Authority submitted that the Local Government Service Commission, which was the employer of all officers serving in Divisions I, II and III, had not sent officers in the stated positions during the period under review.

The Committee was informed that the matter relating to filling of vacant positions was receiving active attention by the Local Government Service Commission (LGSC) and to that effect, recruited employees were, on 9th December, 2022, received.
following the advert which was done by the Local Government Service Commission.

So far, four employees in the positions of namely; District Planning Officer, Deputy Director of Works, Health Inspector and District Aids Coordination Advisor had since reported.

Further, on 5th January, 2023, Chifunabuli Town Council received three revenue collectors who had since reported.
The Committee was informed that a staff vacancy report was submitted highlighting strategic and critical positions that needed to be filled.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.
Failure to Confirm Employees The Accounting Authority submitted that Local Government Service Commission, which was the employer of all officers serving in Divisions I, II and III, had not confirmed some members of staff during the period under review.
The Committee was informed that the matter relating to failure to substantively promote officers who had been acting for more than the acting period was receiving active attention by the LGSC and to that effect, on 22nd September, 2022, the Council wrote a follow-up letter requesting the Local Government Service Commission to substantively promote the mentioned.
35 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

e. Management of Constituency Development Fund (CDF) i.
Construction of 1x3 CRB at Kapoma Primary School – Delayed Completion The Accounting Authority submitted that the contract for the construction of Kapoma Primary School was procedurally terminated and the site repossessed by the Council after failing to find a lasting solution with the contractor on the execution of the project.
The Committee was informed that the project was allocated an amount of K395,616 up to completion of the remaining works under the CDF funding for the year 2022, and the project was undergoing procurement processes.

Committee’s Observations and Recommendations The Committee expresses concern at the delay in implementing the project due to non performance by the Contractor.

The Committee observes that this is due to poor contract management and violation of procurement procedures.
In this regard, the Committee urges the Accounting Authority to ensure that measures are put in place to enhance contract management and procurement systems in order to deter the recurrence of the matter.

The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Construction of 1x3 CRB at Kapumpe Primary School – Delayed Completion The Accounting Authority submitted that the contract for the construction of Kapumpe Primary School was procedurally terminated and the site repossessed by the Council after failing to find a lasting solution with the contractor on the execution of the project.
Further, Council wishes to report that the project was allocated an amount of K352,085 up to completion of the remaining works under the CDF funding for the year 2022, and the project was awarded to a successful bidder and the contractor was yet to take possession of the site after the projects were cleared by the Office of the Attorney General.

Committee’s Observations and Recommendations The Committee expresses concern at the delay to implement the project due to non performance by the contractor.
The Committee observes that this is due to poor contract management and violation of procurement procedures by the Council.

In this regard, the Committee urges the Accounting Authority to ensure that measures are put in place to enhance contract management and procurement systems, in order to deter the recurrence of the matter.

The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.

iii.
iii.

Construction of 1x3 CRB at Shikamushile Primary School – Delayed Completion The Accounting Authority submitted that the contract for the construction of Shikamushile Primary School was terminated and the site repossessed by the Council after failing to find a 36 lasting solution with the contractor on the execution of the project.
The Committee was informed that the project was allocated an amount of K297,522 up to completion of the remaining works under the CDF funding for the year 2022, and the project had been awarded to a successful bidder and the contractor was yet to take possession of the site after the projects were cleared by the Office of the Attorney General.

Committee’s Observations and Recommendations The Committee expresses concern at the delay to implement the project due to non performance by the contractor.
The Committee observes that this is due to poor contract management and violation of procurement procedures by the Council.

In this regard, the Committee urges the Accounting Authority to ensure that measures are put in place to enhance contract management and procurement systems, in order to deter the recurrence of the matter.

The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.

Irregular Charge of Value Added Tax iv.


The Accounting Authority submitted that the named contractors were engaged and written to over the failure to produce VAT registration certificates, which were collected and were available for audit verification.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist for taking action after the audit process.
The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification subject to which the matter must close.
f. Management of Liabilities - Failure to Remit Statutory Obligations The Accounting Authority submitted that the failure to remit statutory obligations in full was due to the financial challenges the local authority had been facing coupled with a huge monthly gross wage bill with limited local revenue base to supplement the 80 per cent component of the Local Government Equalisation Fund.
The Committee was informed that the Council had since come up with respective payment plans with the mentioned statutory bodies on how it could liquidate its statutory obligations.
It was further agreed that every month K10,000 would be paid to NAPSA in respect of the outstanding penalty amount for late payments while paying in full the current month’s statutory obligations and K40,000 would be paid to ZRA monthly as part payment towards the outstanding statutory obligations while amounts totaling to K425,375.45 were remitted to ZRA towards the outstanding obligations for the period under review.
Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to offset outstanding statutory liabilities, in gloss violation of the workers Conditions of Service and the regulations.

In this regard, the Committee urges the Accounting Authority to put measures in place which will enable the Council to clear outstanding liabilities without any further delay.

The Committee will 37 await a progress report on the matter.
Chikankata Town Council Paragraph 15 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following to which the Accounting Authority submitted as set out below.
Budget and Income  The Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K24,635,419 against which amounts totaling K20,812,314 were received and generated resulting in a negative variance of K3,823,105.

See table 1 below.
See table 1 below.

Table 1: Budget Vs. Actual Income Management Response Local Taxes Management budgeted to collect from local taxes K8,872,848 and was able to collect K5,662,404 which represented a 64 per cent collection efficiency and left a balance of K3,210,444.
Management had introduced the use of bulk SMS to send property rate bills which was directly 38 1 8,872,848.00 5,662,404 (3,210,444)2 1,334,641 1,165,844 (168,797)3 210,456 132,450 (78,006)4 656,500 690,785 34,285 5 85,320 46,971 (38,349)6 3,549,200 3,526,399 (22,801)7 No.Source of RevenueBudget KActual Collection KVariance KLocally Generated 14,731,465 11,224,853 9,903,954 9,587,461 24,635,419 20,812,314 22,500 - (22,500) (3,506,612)8 8,103,954 7,987,461 (116,493)9 - 10 (200,000) (316,493) (3,823,105)Local taxesFees and ChargesLicencesLeviesPermitsOther ReceiptsCommercial VentureLocal Government Constituency Development FundOther GrantsSub totalNational SupportSub totalTotal 1,600,000 1,600,000 200,000 - linked to the revenue account (e-payment) for ease of collection and to remove the human interface.
Further in the 2023 budget, management had planned to procure motorbikes at the cost of K200,000 to reach the far-flung areas of the district.

Management had started massive sensitisation by using the public address system on the importance of paying taxes to the local authority through the office of the Public Relations Officer and engagement of the area Councillors.
Fees and Charges In the 2021 budget, management budgeted to collect from fees and charges K1,334,641 and was able to collect K1,165,884 which represented an 87 per cent collection efficiency and left a balance of K 168,797 which was brought about by the COVID-19 pandemic, which caused a number of business operations to close or reduce their scale of operations.
A Task Force was constituted to sensitise taxpayers on the need to pay Council taxes in order for the Council to provide the required municipality services.

Licenses In the 2021 budget, management budgeted to collect from licenses K210,456 and was able to collect K132,450 which represented a 63 per cent collection efficiency and leaving a balance of K78,006 which was brought about by COVID-19 pandemic, which caused a number of business operations to close or reduce their scale of operations.
Management had intensified the inspections of trading places and had budgeted for the procurement of two motorbikes at a cost of K200,000 in the 2023 budget that would be used by the revenue officers when collecting revenue.

Management had started massive sensitisation through the use of a public address system and community meetings on the importance of paying taxes to the local authority through the office of the Public Relations Officer and the area Councillors.
Levies In the 2021 budget, management budgeted to collect from levies (Crop Levy) K656,500 and was able to collect K690,785 which represented a 105 per cent collection efficiency which resulted in an over collection of K34,285 which was due to Council collecting more money than was anticipated.

Council would encourage the revenue officers to meet the targets set or even exceeded them.
Permits In the 2021 budget, management budgeted to collect from Permits, Other Receipts and Commercial Ventures, K85,320 and was able to collect K46,971 which represented a 55 per cent collection efficiency and leaving a balance of K38,349 which was brought about by COVID-19 pandemic, which caused a number of business operations to close or reduced their scale of operations.
Management had introduced the use of bulk SMS to send property rates bills which was directly linked to the revenue account (e-payment) for ease of collection and to remove the human interface.

39 Management had started massive sensitisation on the importance of paying taxes to the local authority through the office of the Public Relations Officer and area Councilors.
Other Receipts In the 2021 budget, management budgeted to collect from Other Receipts K3,549,200 and was able to collect K3,526,399 which represented a 99 per cent collection efficiency, this was from funds which were received from Electoral Commission of Zambia (ECZ).

Management would continue to use money received from external funders prudently.
Commercial Ventures In the 2021 budget, management budgeted to collect from Other Receipts K22,500, but collected nothing, which represented a 0 per cent collection efficiency because management had planned to operationalise the butchery, block making factory and the bar and restaurant which was not done in the year under review.
The bar and restaurant had since been constructed and the butchery was operational and the block making factory had been funded K400,000 and the Local Government Service Commission (LGSC) had sent an Assistant Commercial Manager who would be in charge of the Commercial Section.

The Commercial Manager would be given sales targets which if archived would improve the cash flow of the Council.
Local Government Equalisation Grant The Council budgeted to receive K8,103,0954 as Local Government Equalisation Fund for the year 2021 but only received K7,987,461, leaving a balance of K116,493 as unreceived funds from Ministry of Local Government and Rural Development.

The Council had no control over funds that were received from the Ministry of Local Government and Rural Development.
Other Receipts Management budgeted for a K200,000 as Grant in Lieu of Rates but the Ministry of Finance did not send this amount in the year under review.

Council had no control over funds that were received from the Ministry of Local Government and Rural Development.

Committee’s Observations and Recommendations The Committee commends the Accounting Authority for the positive variance posted on the revenue streams under locally generated revenue.
The Committee urges the Accounting Authority to enhance the effort and ensure that more measures are put in place to maximize the collection.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
 Environmental Management - Poor Management of Nanduba Dumpsite Operating Nanduba Dumpsite Without ZEMA Authority 40 The operation of the dumpsite without ZEMA authority was due to the fact that it was a temporal dumpsite while the Council was looking for a permanent dumpsite.

The Council had found permanent land for a dumpsite and had allocated an amount of K150,000 in the 2023 budget for this purpose.
After the budget was approved, the Council would write to ZEMA so that authority was granted for the Council to use the land as a dump site.

No Warning Signs and Fencing at the Nanduba Dumpsitesite The nonexistence of the warning signs and fence at the time of the audit was due to vandalism by the community.

The warning signs at the dumpsite had been re-installed and were available for audit verification.
The Council would always ensure that it abides by ZEMA regulations on matters of Public Health and the Council had deployed Council Police at the dump site.

Committee’s Observations and Recommendations The Committee observes with concern that the Council was operating a dumpsite without approval from ZEMA.

In this regard, the Committee urges the Accounting Authority to ensure that the said ZEMA approval is secured without delay.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
 Accounting for Revenue - Failure to Collect Revenue It was submitted that in the 2021 budget, management budgeted to collect from Property Rates K6,114,751 and was able to collect K5,620,998, which represented a 92 per cent collection efficiency and the balance of K493,753 was due to the community’s failure to appreciate the value of paying taxes to the local authority.

Management was sensitising the community on paying revenue to the Council so as to achieve 100 per cent collection efficiency.
Committee’s Observations and Recommendations The Committee commends the Accounting Authority for the 92 per cent collection efficiency but urges the Accounting Authority to enhance the effort and ensure that more measures are put in place to maximise the collection.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
 Procurement of Goods and Services - Splitting of Cheques to Circumvent the Prescribed Limits It was submitted that this was due to an oversight of the regulations.

The finance officers had been instructed to stop splitting cheques or payments as per financial regulations and charge letter was written to the officers that initiated the splitting of the cheque.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await 41 a progress report on the matter.

 Management of Assets  Lack of Title Deeds It was submitted that the Council houses had been built on the land that had been petitioned by the community.
However, the re-planning process was ongoing since the houses were built on land which was meant for other facilities and the Council awaited the judgment in order to start processing the title deeds.

The matter was still in court and the Council awaited the judgment in order to start processing the title deeds.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

 Failure to Insure Equipment It was submitted that a motor grader, backhole loader and tractor were not insured in the year under review.
However, for the 2023 financial year, management had insured all its properties including the motor grader, backhole loader and tractor.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
 Management of Local Government Equalisation Fund  Construction of Staff House at Hapwaya Clinic – Delayed Completion of Project The Accounting Authority submitted that at the time of the audit, there were some outstanding works on the said contract.

The contractor abandoned the site and as a result, works stalled at the site.

This was phase one of the contract which was intended to go up to the gable level.
The local authority had awarded the second phase of the project to another contractor and the works which were not done were included in the next phase of the contract, and the contractor was on site.

Furthermore, the Council wrote a charge letter to the Director of Works for his sub- performance standard in the execution of his duties.

The Council would ensure the completion of projects by avoiding awarding phased contracts as they delayed the final completion of the projects.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

 Rehabilitation of the Colleen Street The Accounting Authority submitted that culvert installation was scheduled to be the last activity 42 on the project.
However, the delivery of the concrete pipes delayed the project with regards to culvert installation.

Concrete pipes had been delivered to the site and the construction of culverts was underway.

Management had tasked Works Department to ensure that projects were completed within the stipulated period and employed JIT/Lean technics for the delivery of procured materials.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
 Management of Constituency Development Fund  Delayed Implementation of Approved Projects It was submitted that phase one construction of the Shingoma health post had been delayed owing to the successful contractor not accepting the contract as the contract sum was said to be too low.

A new contractor had been awarded the contract for phases one and two while phase one construction of a Shingoma Health post had been completed with the structure going up to roof level.
Phase two construction which would see the project completed and in use had been awarded and works were being executed.

The Mothers’ shelter has been completed; awaiting external works, but the structure was habitable and was available for audit verification.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

 Completion of 1x2 Classroom Block at Naluama Primary School It was submitted that the construction of a 1X2 Classroom block at Naluama was awarded to the contractor who later abandoned the site.

The contract was formally terminated by the local authority to pave way for the completion of the project using force accounting/labour based.

The completion of the remaining works had been done through a labour based contract.
The Council had tasked Works Department to ensure that projects were completed within the stipulated period and any unwarranted delays would not be tolerated.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
43  Drilling of Twelve Boreholes The Accounting Authority submitted that the driller was not on-site during the time of the audit and a few weeks prior.

Meetings had been held and correspondences sent to the driller to register management’s displeasure in the manner the contract was being executed.
The contract was a joint venture with Rainbow drilling and exploration Limited, this affected the execution of works as at that time of implementation, Rainbow company had committed its machines to other projects and the driller had to outsource for another Rig, this impacted the project negatively as the cost of a few dry boreholes could not be sustained within this project and delivery on time.
The Contract had been terminated and the Council had sent out solicitation documents to other would-be drillers.

The Council had tasked the evaluation committee headed by the Procurement Officer and Deputy Director Works to conduct further due diligence when considering drillers while focusing on reputation and details of equipment ownership before onward submission to the procurement committee.
Committee’s Observations and Recommendations The Committee expresses displeasure at the failure by the Contractor to drill boreholes and the time lost due to delayed termination of the contract by the contractor.

In this regard, the Committee urges the Accounting Authority to be proactive and ensure that the new contractor is expeditiously identified and have boreholes drilled without delay.

The Committee resolves to await a progress report on the matter.
 Management of Liabilities  Failure to Remit Statutory Contributions ZRA, NAPSA, LASF It was submitted that the Council was unable to settle Statutory Obligations due to liquidity problems which was caused by Council’s low revenue base.

Management had started to diversify its revenue base by constructing a bar and hostels and a block-making plant so as to reduce its overreliance on ZESCO rates.

Further, in the 2022 budget, the Council started paying the existing debt as follows.
Payment of Statutory Obligations Type of Debt ZRA NAPSA LASF Sn 1.

2.

3.

Bal 31:12:2021 1,166,282 874,679 30,288 Paid 276,912.38 159,094.62 30,288 Bal 31:12:2022 889,374.62 715,584.36 - The Council had intensified its revenue collection so as to pay the historical debts.
For instance, the Council had declined to give further remissions on Property Rates to ZESCO limited which was paying K3,020,205.15 but would pay K12,080,820.60 which would result in a net increase of K9,060,615.45 and this decision would enable the Council pay its obligations and provide service delivery in the district.
44 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of statutory obligations to avoid violation of tax laws and workers Conditions of Service.

The Committee will await a progress report on the full dismantling of the arrears, without delay.

 Failure to Settle Staff Obligations It was submitted that the Council was unable to settle Staff obligations due to liquidity problems which was caused by Council’s low tax base.
Management had started to diversify by constructing a bar and hostels and a block-making plant so as to reduce its overreliance on ZESCO rates.

Further, in the 2022 budget, the Council started paying the current debt as follows: Payment of Staff Obligations Sn Type of Debt 1.

Terminal Benefits 2.

Leave Travel Benefits Settling in Allowances 3.


Bal 01:01:2022 1,487,069 166,040 127,396 Paid 405,685 46,000 127,376 Bal 31:12:2022 1,081,384 120,040 - Council had intensified its revenue collection so as to pay the historical debts.
For instance, the Council had declined to give further remissions on Property Rates to ZESCO limited which was paying K3,020,205.15 but would pay K12,080,820.60 which would result in a net increase of K9,060,615.45 and this decision would enable the Council pay its obligations and provide service delivery in the district.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of staff obligations to avoid violation of tax laws and workers Conditions of Service.

The Committee will await a progress report on the full dismantling of the arrears, without delay.
Chinsali Municipal Council Paragraph 16 Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K20,657,375 against which income totaling K17,038,400 were actually received and generated resulting in a negative variance of K3,618,975 as shown in table 1 below.

Table1: Budget and Income No.
Sources of Funds Locally Generated Local taxes Fees and Charges Licences Levies 1 2 3 4 Budget K Income K Variance K 1,191,433 4,602,538 522,425 18,300 45 446,613 2,493,252 558,632 25,314 (744,820) (2,109,286) 36,207 7,014 Permits Commercial Venture Subtotal National Support 453,594 921,000 7,709,290 422,295 (7,870) 3,938,236 (31,299) (928,870) (3,771,054) Local Government Equalisation Fund Constituency Development Fund 1,600,000 Other Grants 11,348,085 11,000,164 (347,921) 1,600,000 500,000 13,100,164 17,038,400 - 500,000 152,079 (3,618,975) - 12,948,085 20,657,375 Subtotal Total In addition amounts totaling K745,846 were brought forward, bringing the total funds available to K17,784,246 during the period under review.
Management Response The Accounting Authority submitted that the Council did not manage to operate at 100 per cent collection efficiency due to under performance in certain budget lines.

This was mainly caused by the effect of the COVID-19 pandemic which affected the Business communities in Chinsali, including Nkakula Guest House owned and operated by the Council.

The Committee was informed that the Council had measures tabulated, to avoid the recurrence of the query.

46 No.
46 No.

Sources Funds of Budget K Income K Variance K Locally Generated 1 Local taxes 1,191,433 446,613 (744,820) 2 and 4,602,538 2,493,252 (2,109,286) Fees Charges 3 Licences 522,425 558,632 36,207 Action taken Remedial Measures Committee’s Observations Recommendations and Community sensitisation such radio programme ,public address, notices and encouraging property owners to come and make part-payments.

As at 31st December, 2022, Council collected K542,340.82.
Further, Council had been in touch with Ministry of Local Government and Rural Development over Tazama Pipelines limited which owed Council K1,609,511.20 as at 31st January, 2023. had undertaken the Council sensitisation of business owners alongside the updating of the data base.

This was in a bid to take into account active businesses and those which closed due to the COVID-19 effect.
The Council had updated the clients’ database the businesses which were re-opened after into account take to 47 the The Council had conducted timely distribution of bills and undertaken massive sensitisation to residents on importance of paying the Rates.

Citizens were further flexible informed of options plan payment available.

This sensitisation was being undertaken with the help of USAID under the Impact Governance Local Project.
Council was updating its Valuation Roll so as to ensure all ratable properties were captured accordingly billed.

The Council had formed the Task-Force revenue collection whose role was to ensure that Business owners were encouraged to pay in installments those who could not manage to pay at once.

The Council would base its budgeting the updated database and where future on and on in The Committee urges the accounting Authority to be proactive and desist from taking action after the The process.
audit Committee also urges that Accounting Authority to ensure that the proposed measures are actualised without The Committee will await a the progress matter.

report on fail.

The Committee will await a progress report on the actualisation the of proposed measures.

The Committee urges accounting the be Authority to 4 Levies 18,300 25,314 7,014 5 Permits 453,594 422,295 (31,299) 6 Commercial Venture 921,000 (7,870) (928,870) COVID-19 business environment.
pandemic eased the possible the budget would be adjusted.

to take The Council had updated the clients’ database the businesses which were re-opened after COVID-19 the pandemic business environment.

into account eased its The Council shall base budgeting the future on in updated database and where possible the budget would be adjusted.

to The Council had updated the clients’ data base into account take businesses which was re-opened after the pandemic COVID-19 Business environment.
eased its The Council shall base budgeting the future on in updated data and where possible the budget was adjusted.

The Council was renovating the Lodge to make it more attractive to the members of the public.

The wall fence was at 60 per cent complete whilst the interior works were at procurement stage.

its The Council shall base budgeting the future on in updated data and where possible the budget was adjusted.

audit audit to close proactive and desist from taking action after process.
the However, the Committee resolves to close the matter subject to audit verification.

The Committee urges the accounting Authority to be proactive and desist from taking action after the process.

However, the Committee resolves the matter subject to audit verification.

The Committee urges the accounting Authority to be proactive and desist from the taking action after audit process.

However, the Committee resolves to close the matter subject to audit verification.
Subtotal 7,709,290 3,938,236 (3,771,054) 48 National Support 7 Local Government Equalisation Fund 8 Constituency Development Fund 11,348,08 5 11,000,16 4 (347,921) 1,600,000 1,600,000 - 9 Other Grants - 500,000 500,000 Subtotal Total 12,948,08 5 20,657,37 5 13,100,16 4 17,038,40 0 152,079 (3,618,975) The Council Management had revised the figure of the Local Government Equalisation Fund as per the approved Budget circular from the Ministry of Local Rural Development.
Government and The Council shall strictly follow the approved Budget Circular the Ministry of Local from Rural and Government Development when Budgeting.

The Committee notes the response and resolves to close the matter.

The Council had revised the figure of Grant in lieu rates in consultation with the Ministry of Local Government and Rural Development.

The Council shall strictly follow the approved Budget Circular the Ministry of Local from Government Rural and Development when Budgeting.
The Committee notes the response and resolves to close the matter.

49 Operation of Markets - Illegal Market The Accounting Authority submitted that the illegal market had been established in Kabuta compound without authority of the Council.

The Council undertook stakeholder engagement through a meeting held on 3rd February, 2023 in a bid to sensitise the locals on the need to operate from designated trading places.
A site to set up a modern market in Kabuta area had been established and the funds for building the market had been secured through the Constituency Development Fund as could be seen from the approval list from the Ministry of Local Government and Rural Development and the minutes of the CDFC meeting held on 22/06/22.

The Accounting Authority also submitted that the Council resolved to create satellite markets in the developing nodes of the district to prevent the mushrooming of illegal markets.
Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council was not being proactive to designate a permanent trading area in Kabuta, when it was a direct source of revenue.

The Committee also wonders why the market was left to operate illegally, when the Council was mandated to designate markets.

In this regard, the Committee urges the Accounting Authority to ensure that the market is set up as a matter of urgency.
The Committee will await a progress report on the matter.

Accounting for Revenue-Failure to Collect Property Rates The Accounting Authority submitted that the Council failed to collect revenue in amounts totaling K1,080,567 in respect of property rates as at 30th September 2021, due to a long standing impasse with TAZAMA Pipelines Limited which owed the Council a sum of K1,609,511.20 as 31st January, 2023.
The Committee was informed that Council Management was sensitising the community and encouraging property owners on the availability of flexible payment plan such as paying installments.

As at 31st December, 2022, the Council collected K 542,340.82.

Further, Council had been in touch with the Ministry of Local Government and Rural Development and TAZAMA Pipelines limited over the matter concerning TAZAMA Pipelines limited.
The Committee was also informed that Council management had commenced massive distribution of bills.

Further, the Council was updating the main valuation roll and the quotation had been received in the amount totaling K480,000 awaiting approval and payment.

The Committee was also informed that the Council had embarked on massive sensitisation campaign with the support from USAID under its Local Impact Governance Project on the importance of citizens’ payment of local taxes to the municipality.
The establishment of the Task Force on revenue collection had also helped a lot in collecting own source revenue.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee will await a progress report on the actualisation of the proposed revenue measures.
50 Management of Payroll and Other Staff related Matters Failure to Fill Vacant Positions The Accounting Authority submitted that Council was operating at an establishment which was not complete as per the 2012 harmonised staff establishment without the key position to the smooth running of the Council such as Chief Internal Auditor, Chief Administrative Officer, Senior Security Officer, Chief Architect and Chief Community Development Officer.
The Committee was informed that the Council had engaged the Local Government Service Commission and most of the highlighted positions had been filled except the position of Chief Architect.

The Council was trying to balance the source of income with the level of Establishment.

Considering the level of income, the Council could not manage to pay at full establishment.
Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to fill all the critical vacant positions, thereby affecting the delivery of service to the Community.

The Committee finds it unfortunate that the situation was attributed to the low revenue base by the Council.

In this regard, the Committee urges the Accounting Authority to ensure that all critical positions are filled up without delay.
The Committee also urges the Council to put measures in place which will broaden the revenue base of the Council and alternately generate revenue to meet the cost of its establishment.

The Committee will await a progress report on the matter.

Failure to Confirm Officers on Probation The Accounting Authority submitted that the Council was waiting for the Local Government Service Commission to confirm the cited officers.
The Committee was informed that the Council had engaged the Local Government Service Commission and twenty out of twenty-two officers who were not confirmed had since been confirmed.

As regards the two officers who were yet to be confirmed, as well as others whose confirmations were due, the Council was in constant touch with the Commission to ensure that the needful was done.
The Committee was also informed that following the successful formation of the Human Resource Management Committee at the Council, the Local Government Service Commission had delegated the authority to confirm members of staff falling within LGSS 13-18, among other responsibilities.

With regard to officers falling outside the above salary scales, the Council was in constant engagement with the Local Government Service Commission.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee, however, resolves to close the matter subject to audit verification.
51 Over Employment of Staff The Accounting Authority submitted that the Council was operating with an excess of three officers who were paid salaries in amounts totaling K83,499 who were sent by the Local Government Service Commission during the period under review.

The Committee was informed that Council Management following the observation for the auditor, communicated to Local Government Service Commission and one officer had since been transferred to Mafinga Town Council.
With regard to the other two excess staff, Management had administratively designated them as Clerical officers and moved them to Planning Department to aid with processing of CDF applications.

This designation was yet to be ratified by the Commission.

Committee’s Observations and Recommendations The Committee expresses concern at the measure taken by the Service Commission to deploy excessive officers.

The Committee finds this unacceptable and urges the Council to re-engage the Commission on the matter.
The Committee will await a progress report.

Procurement of Goods and Services Payment of Allowances within the Normal Duty Station The Accounting Authority submitted that the Council erroneously paid meal allowances in amounts totaling K67,035 to three officers for activities undertaken within their station of duty.

The works were undertaken in places where the officers could not go and do the work and come back the same day.
It was submitted that the allowances were erroneously paid to officers that were undertaking work at places as far as 140 kilometers from the Central Business District, during the sensitisation and formation of Ward Development Committees, with dateline of 31st December, 2021.

Henceforth, Council Management was only making payment in accordance with the set guidelines.
The Committee was informed that following the Auditor General’s observation, Council wrote to the Ministry of Local Government and Rural Development seeking retrospective authority, through the letter dated 7th July, 2022.

Committee’s Observations and Recommendations The Committee observes with concern the effort by the Accounting Authority to regularise the irregularly paid meal allowances.
In this regard, the Committee urges the Accounting Authority to institute disciplinary action against officers who approved the payment, in violation of the financial regulations.

The Committee also urges the Accounting Authority to institute recoveries from the affected officers.

The Committee will await a progress report on the matter.
52 Irregular Procurement of Receipt Books from Private Institution The Accounting Authority submitted that books were purchased during the period the Ministry of Finance and National Planning Strong Room did not have stock of books, such that Council Management was constrained to collect revenue.

This was a one off intervention.


The Committee was informed that after the confirmation by the Ministry of Local Government and Rural Development that the Books had been secured, Council Management adhered to the instructions and books were being collected from the Ministry of Finance and National Planning Strong Room.
Committee’s Observations and Recommendations The Committee expresses displeasure at the violation of the procurement regulations with impunity and therefore strongly cautions the Accounting Authority against the practice.

The Committee, however, resolves to close the matter subject to audit verification.
Management of Assets Lack of Title Deeds The Accounting Authority submitted that the Council had since secured the relevant recommendations for the issuance of title deeds and lodged them with the Ministry of Lands and Natural Resources, after which Invitations to Treat would be issued.

The Council had title deeds for two of its properties and the acquisition of the other title deeds was being done in a phased manner.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and prioritise the acquisition of title deeds for its properties without delay.

The Committee will await a progress report on the matter.

Abandoned Tractor Loader Backhoe - TLB The Accounting Authority submitted that the TLB was taken to Mkushi for repair.
The Council was organising transport for moving the item back to Chinsali while pursuing the company (Agricon Equipment) which was contracted to work on the TLB, for the missing parts.

Committee’s Observations and Recommendations The Committee bemoans the laissez faire attitude adopted by the Council on the management and repairs of the said abandoned equipment.

The Committee also observes the lack of due care by the Council on the engagement of the company to service the equipment.
In this regard, the Committee urges the Accounting Authority to put measures in place to enhance the procurement processes so that credible companies are identified.

The Committee also urges the Accounting Authority to ensure that the TLB is worked on and secured without delay.

The Committee will await a progress report on the matter.
Management of Local Government Equalisation Funds Misapplication of Capital Funds The Accounting Authority submitted that Council misapplied amounts totaling K698,609 meant 53 for capital projects on operational expenses due to liquidity challenges.

The Committee was informed that the Council had commenced making payments towards the borrowed funds and had since paid back K150,000.
Committee’s Observations and Recommendations The Committee expresses displeasure at the violation of the financial regulations with impunity and therefore strongly cautions the Accounting Authority to desist from the practice.

The Committee, however, urges that the funds must be repaid in full without delay.

The Committee will await a progress report on the matter.

Construction of a Refuse Bay at Nambuluma Road Junction.
The Accounting Authority submitted that the officers involved were charged for failure to update the bill of quantities after instructing the contractor to change the materials for the walls of the Refuse Bay.

Additional funds paid to the contractor were recovered from the said officers.

The Committee was informed that levels of supervision and oversight had been increased to avoid recurrence of such errors.
Design reports were required to justify the nature of interventions being proposed to reduce the issuance of instructions for variation of specifications.

Committee’s Observations and Recommendations The Committee bemoans the poor project management and urges the Accounting Authority to put measures in place that will enhance the project management at the Council.

The Committee will await a progress report on the matter.
Construction of a Guard Post at Council check point along Nambuluma Road The Accounting Authority submitted that the structural strength of the building stabilised.

A provision would be made in the wall for an additional window, to improve visibility.

Further, the Council had enhanced its liaison with key government institutions such as the Road Development Agency to avoid similar errors in the future.
Committee’s Observations and Recommendations The Committee finds unacceptable the disorderly matter in which the project was managed.

The Committee also finds it unacceptable that the Council was proposing modifications to the building after the works were completed.

In this regard, the Committee urges the Accounting Authority to put measures in place which will enhance the project management at the Council.

The Committee will await a progress report on the rectification of defects on the project.
54 Management of Constituency Development Fund  The Accounting Authority submitted as tabulated below.
Constituency Project Contractor Contract Contract Date Start End Contract Sum K Chinsali Construction of 1x2 Chief Kay 17/06/21 17/06/ 15/09/21 147,107 21 Constituency Classroom at General Dealers Nkweto Primary school in Kaunga Ward Project Status and Action taken Scope of Works Amount Paid K 132,396 Completion of Construction of Phase (1) of a 1×2 Classroom block that other observations physical A inspection of the project carried out in February 2022 revealed the works had been completed.
However, the following materials were missing; • 60 iron sheets costing K33,000 (K550 each).

had The Committee was informed that the cost of missing material been established and would be recovered from contractor the as it had a running Contract with Council.

the Council The engaged the Contractor.

Further, Council heightened supervision of tasked officers with the preparation of BOQs the had • 24 Ridges costing K4,440 (K185.

50 each).
50 each).

• 81×50 bags cement of costing K12,150 55 Construction of 1 x 4 classroom at Choshi primary school Lubu in Swila 17/06/21 17/06/ 21 15/09/21 156,377 132,920 Completion General Dealers of of constructio n phase of a 1×4 Classroom (1) physical A the inspection of project carried out in February 2022 revealed the had been works completed.

However, the following materials that Ward block were missing; • 14×420 sheets K5,880.
• 14×120 iron costing ridges The Accounting Authority that submitted the of cost missing material be would recovered from the Contractor.

Further, Council heightened the had of supervision officers tasked with preparation of BOQs.
costing K1,680 56 Project Contract Date Project Contract Start Start Contract Sum (K) Amoun t Paid K Scope of Works Action taken Project Status and other observations Construction of Completion Vitondo Day Secondary 1× 3 Alifax General Dealers 17/06/202 1 17/06/202 1 15/09/2021 104,870 89,139 Completion of construction of phase (1) of 1×3 Classroom A physical inspection of the project carried out in February 2022 revealed that the works had been completed.
The Accounting Authority submitted that cost of material missing would be recovered from the Contractor.

Further, the Council the block the However, following were Observed;  50 Iron sheets costing K22,500 (K450 each) had not been delivered to the project site.

 20 Ridges costing K1,900 each) missing  6 Bags of (K95 were heightened had of supervision officers tasked with preparation of BOQs.
57    Cement costing K990 (K165 each) were missing Committee’s Observations and Recommendations The Committee bemoans the poor project management by the Council, resulting into excessive procurement of materials and the eventual loss of the same.

In this regard, the Committee urges the Accounting Authority to put measures in place which will enhance the project management at the Council.
The Committee also urges that the money spent on the materials be fully recovered, from the Contractors without fail.

The Committee will await a progress report on the matter.

Management of Liabilities Failure to Remit Statutory and other Obligations The Accounting Authority submitted that the Council had started paying the obligations in installments and ensuring that it avoided building future debts.
The Council had since paid K3,254,858.25 with the help of Ministry of Local Government and Rural Development.

The following table shows the status: Table 5: Unremitted Statutory and Other Obligations Payments (K) Institution No .
Balance as at 31.12.2020 (K) Obligations for 2021 (K) 1 ZRA 6,672,119 2,143,456 Cumulativ e Amoun t (K) 8,815,574 2 NAPSA 3,082,122 1,146,362 4,228,484 3 LASF 1,830,237 397,946 2,228,183 4 MLIFE 142,611 77,361 219,973 - - - - Accumulati Accumula Paymen on 31.12.2021 (K) 8,815,574 4,228,484 t (K) at tion as 31.12.20 22(K) 2,611,233.

44 660,630.08 - 2,890,34 5.76 2,228,183 117,970.13 348,330.
219,973 34,695.98 96 - Balance as at 09.02.23 (K) 8,536,461.6 8 4,889,114.0 8 1,997,822.1 7 254,668.98 5 FIRESUZ 21,784 14,310 36,094 20,000 16,094 14,190.16 16,181.5 14,102.63 58 6 NHIMA 7 149,815 ZULAWU 191,379 154,999 85,140 304,814 276,518 36,065 27,276 268,749 249,242 Total 12,090,066 4,019,574 16,109,640 83,341 16,026,299 3 - 86,619.16 99,480.27 61,230.9 3,711,438.

50 5 3,254,85 8.25 254,668.98 287,491.32 16,234,329.
84 Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to honour statutory and other obligations as and when they fall due.

The Committee observes that this is in gloss violation of the employees Conditions of Service and regulations.

In this regard, the Committee urges the Accounting Authority to come up with income generating ventures which will broaden the revenue base and enable the council dismantle outstanding obligations without fail.
The Committee will await a progress report on the matter.

Failure to Settle Staff Obligations The Accounting Authority submitted that the inability to settle the outstanding staff obligations was due to liquidity challenges.

The Committee was informed that the Council had started paying the obligations in instalments and ensuring that it avoided building future debts.

The amount of K1,141,958 had been paid.

The following table shows the status: Table 4: Outstanding Staff Obligations No.
Type of Debt 1 2 Settling in allowance Salaries Balance as at 31.12.202 0 (K) Obligat ions for 2021 (K) Cumulat ive Amount (K) Paymen ts (K) 327,648 320,352 648,001 186,382 at Balance as 31.12.20 21 (K) 461,619 Payment Balance at as 09.02.202 3 (K) 310,035 151,584 1,105,289 1,013,949 2,119,23 385,787 1,733,452 831,923 901,529 9 Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to honour staff obligations as and when they fall due.
The Committee observes that this is in gloss violation of the employees Conditions of Service.

In this regard, the Committee urges the Accounting Authority to come up with income generating ventures which will broaden the revenue base and enable the council dismantle outstanding staff obligations without fail.

The Committee will await a progress report on the matter.

Chipata City Council 59 Paragraph 17 Audit Findings a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development; and to generate income from various sources in amounts totaling K39,580,983 against which amounts totaling K42,865,128 were received and generated, resulting in a positive variance of K3,284,145.

See table 1 below.
See table 1 below.

Table 1: Budget and Income Management Response The Accounting Authority submitted that the Council budgeted to collect K39,580,983 but collected K42,865,128 resulting into positive variance of K3,284,145.

The positive variance was as a result of the reasons set out below.

Local Taxes i.

Property rates performance was slightly higher than budgeted for due to the engagement of the bailiffs to enforce the collection of the property rates; Licence, Fees, Levies and Permits ii.
The streams performed well due to the establishment of new businesses in the district.

60 iii.

National Support The increase in the 2021 Local Government Equalisation Fund was as a result of special grants, amounting to K947,019, 1,057,019 and K800,776, received in March, April and June, 2021, respectively.

The grants were given to the Council to settle the nine months outstanding salary arrears.
The Committee was informed that the Council had put in place measures to improve revenue collection as follows: a. b. intensified sensitisation of the public on the importance of paying council fees; formed revenue collection task force drawn from various departments to improve collections; updated its database to include new businesses on various categories of income and the subsequent budgets had taken into account the new businesses; enhanced the Local Government Information System (LGIS) by including user friendly features such as mobile platforms and web-based lookup and registration facilities for users and clients.
c. d. Committee’s Observations and Recommendations The Committee commends the Council for meeting most of its revenue targets as budgeted.

The Committee, however, contends that the Council should endeavour to come up with realistic budgets so that the projected revenue is consistent with activities on the ground.

However, the Committee resolves to close the matter subject to audit verification.

e. Accounting for Revenue – Failure to Collect Revenue 61 No.
Type Outstanding Amount K Reason Action Taken Remedial Measure Committee’s Observations and Recommendations 1 Telemast 174,000 The Accounting Authority submitted that the uncollected revenue of the mast levy was due non-payment to by Zamtel The Council had engaged Zamtel the on outstanding mast levy.

The Council would ensure that all the uncollected revenue collected.
was The Committee urges the Accounting Authority to be proactive by invoking punitive measures which will compel Zamtel to pay the mast levies without delay.

The Committee will await a progress report on the matter.

2 Property Rates 12,201,981 The Accounting Authority submitted that the uncollected revenue on rates, property was due to non- compliance by the lease holders.

The Accounting Authority submitted that the uncollected revenue on regularisation of plots was due to non-compliance by the owners.
plot The Council had K collected 7,446,583, leaving a balance of K4,755,398 that The Council would it ensure collected the outstanding amounts.

The Committee urges the Accounting Authority to be consistent and implement the revenue collection measures of engaging the bailiffs to collect the outstanding amounts from non compliant lease holders.

The Committee will await a progress report on the matter.

The Council had collected since from K142,950 regularisation of leaving a plots, balance of K114,640.
that The Council would ensure the uncollected revenue collected.

was The Committee expresses concern at the failure by the Council to collect the revenue.

In this regard, the Committee urges the Accounting Authority to ensure that the bailiffs are engaged to collect the remaining balance, without delay.

The Committee will await a progress report on the matter.
62 3 Regulari sation of plots 257,590 4 Billboard s 3,260,046 Total 15,893,617 The Accounting Authority Submitted that the uncollected revenue on bill boards was due to non-compliance The Council had K collected 811,204 leaving a balance of K2,448,842 that The Council would it ensure collected the outstanding amounts.

The Committee bemoans the lassie faire attitude adopted by the Council on the collection of Billboard fees.
In this regard, the Committee urges the Council to be proactive and ensure that all Billboards, whose owners are failing to pay after re-engaged, are pulled down without delay.

The Committee will await a progress report on the matter.
63 f. Management of Payroll and Other Staff Related Matters - Failure to Fill Vacant Positions The Accounting Authority submitted that the key vacant positions were created due to resignation of a legal officer on 30th April, 2021 while the position of IT Manager had never been filled.
The Committee was informed that the Council had however engaged the Local Government Service Commission, through correspondence dated 26th October, 2022; and staff returns which were submitted on a quarterly basis to ensure that the Commission was well informed on the existing vacancies.

The Council was still awaiting the filling of the positions of IT Manager and Legal Officer- Deeds Section, by the Commission.
The Committee was also informed that the Council would ensure that requests and recommendations for filling of all critical and key positions were timely submitted to the Local Government Service Commission.

Committee’s Observations and Recommendations The Committee bemoans the failure by the Service Commission to fill critical vacant positions at the Council.

The Committee also finds it unacceptable that the Council has not been treating the matter with the urgency it deserves.
In this regard, the Committee urges the Local Government Service Commission to urgently ensure that the said vacancies are filled up without delay.

The Committee also urges the Accounting Authority to be proactive and ensure that the matter is followed up without delay.

The Committee will await a progress report on the matter.
Management of Assets – Failure to Secure Title Deeds g. The Accounting Authority submitted that certificates of title for the thirty-five properties were not available at the time of audit.

It was, however, submitted that the Council conducted a search on the queried properties and found that twenty properties were already on title.
Further, Council proceeded to number and obtained offer letters for two properties and obtained invitation to treat for three properties, whereas three properties had been recommended for offer to the Ministry of Lands and Natural Resources.

Additionally, Council had made an initial engagement with the Paramount Chief on the seven properties that were sitting within the traditional land.

Table 4 below shows the status of the queried properties.
64 Table 4: Showing Number of Properties and Status S/N Description 1 2 3 4 Properties on Common Leasehold Title Properties on Title which was not common leasehold title Properties on Offer Properties on Invitation to Treat No.

of Properties 16 4 2 3 Properties to be reported for recommendation for offer Properties on Traditional land 5 6 Total 3 7 35 As a remedial measure, the Council would ensure that it secured certificates of title for all properties timely.
The Council had also started incorporating all Council properties and documents such as minutes, approved maps, offer letters, certificates of title in the existing Information Technology System.

Committee’s Observations and Recommendations The Committee expresses displeasure at the failure by the Council to secure its properties and the delay to effect the process of acquiring certificates of title.
In this regard, the Committee urges the Accounting Authority to be proactive and ensure that all the Council properties are secured with certificates of title to avoid encroachments and other encumbrances.

The Committee will await a progress report on the matter.

h. Management of Local Government Equalisation Fund (LGEF) – Delayed Completion of the Extension of Fire Station The Accounting Authority submitted that the delay was due to non-allocation of funds in the 2021 budget to complete the project.
The Council had since completed the plumbing works, fitted the toilets, wall tilling in the toilets and showers, the electrical modifications in the lecture theatre and plastering in the ambulance bay.

Committee’s Observations and Recommendations The Committee bemoans the delay by the Council to complete the extension works of the fire service station.

The Committee also expresses concern at the erratic funding to complete the project.
In this vein, the Committee urges the Accounting Authority to ensure that projects are funded to completion and avoid delays.

However, the Committee resolves to close the matter subject to audit verification.

i.

Management of Constituency Development Fund - Failure to Implement Approved Projects The Accounting Authority submitted that the delay to implement two 2020 CDF funded projects, was as a result of non-responsiveness of bids received due to escalation of prices during the year of implementation.
It was also submitted that the delayed implementation of twenty-nine CDF 65 projects for 2021 funding, was due to approval processes by the Provincial Administration and the Office of the Attorney General.

The Committee was informed that all the projects had been awarded and the contractors were on site.

The Committee was also informed that the Council would ensure that implementation of all projects was done timely since the Government had decentralised the approval processes to provinces.
Committee’s Observations and Recommendations The Committee expresses displeasure at the delay in the implementation of the 2020 and 2021 CDF funded projects, when the funds were available to do so.

In this regard, the Committee urges the Accounting Authority to be proactive and ensure that the affected 2020 and 2021 CDF funded projects are implemented and commissioned without any further delay.

The Committee will await a progress report on the matter.

Failure to Remit Statutory and Other obligations j.
Management of Liabilities i.

The Accounting Authority submitted that the Council was unable to pay statutory obligations due to narrow revenue base.

The Committee was informed that the Council had since started carrying out activities to improve on the financial situation by updating the Valuation Roll and intensifying revenue collection through community sensitisation programmes on local radio and television stations, among other means.
Table showing payments that had been made towards the outstanding statutory debt: No Balance b/f (K) 18,003,858 9,908,220 8,267,520 239,967 27,826 23,807 293,529 234,135 36,998,862 Institution ZRA NAPSA LASF NHIMA ZULAWU SANLAM MADISON INVESTRUST Total Payments (K) 100,000 130,000 249,453.45 53,159.90 18,500 - - 90,000 641,113.35 Balance (K) 17,903,858 9,778,220 8,018,066.55 186,807.10 9,326 23,807 293,529 144,135 36,357,748.65 Committee’s Observations and Recommendations The Committee bemoans the laissez faire attitude adopted by the Council towards the payment of statutory and other obligations.
The Committee observes that the Council does not prioritise the welfare of its workers for the service rendered, especially retirees, going by how much it had remitted to the relevant pension institutions.

66 The Committee also observes with concern that a City Council could lament of narrow revenue base when it had various business activities taking place, which could serve as source of revenue.
In this regard, the Committee urges the Accounting Authority to be innovative and identify more revenue streams for the Council, by developing more commercial ventures within the city.

The Committee also urges the Accounting Authority to prioritise the updating of the valuation roll and ensure that measures are put in place to compel the rate payers to pay.
The Committee further urges the Accounting Authority to prioritise the payment of statutory obligations and ensure that the outstanding arrears are cleared without any further delay.

The Committee will await a progress report on the matter.

ii.

Failure to Settle Staff Obligations The Accounting Authority submitted that the Council was unable to pay staff debt due to narrow revenue base.
The Committee was informed that the Council had been making payments towards Long Service Bonus and terminal benefits as and when funds were available.

Table showing payments made towards the outstanding debt: No.
Type of Debt 1 2 Terminal benefits Long Service Bonus Total Balance b/f 5,526,251 2,775,930 8,302,181 Payments 178,077.58 69,401.50 247,479.08 Balance 5,348,173.42 2,706,528.50 8,054,701.92 Committee’s Observations and Recommendations The Committee bemoans the negligence by the Council to pay its former and existing employees, their entitlements.
The Committee is dismayed that despite the huge unpaid balance, the Council has not demonstrated efforts on how it will urgently liquidate the debt, which keeps on increasing.

In this regard, the Committee urges the Accounting Authority to develop a debt dismantling plan and ensure that the outstanding payments are cleared without any further delay.

The Committee will await a progress report on the matter.
Chipili Town Council Paragraph 18 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K11,954,379 against which amounts totaling K10,791,494 were received and generated resulting in a negative variance of K1,162,885.

See table 1 below.

67 Table 1: Budget and Income No.
Sources of Funds Locally Generated Local Taxes Fees and Charges Licences Levy Permits Government Commercial Venture Subtotal National Support Local Equalisation Funds Constituency Development Fund Other Grants Subtotal Total Budget K Income K Variance K 20,000 972,264 2,000 17,000 3,500 800,000 1,814,764 710 692,821 1,537 6,480 250 67,863 769,661 (19,290) (279,443) (463) (10,520) (3,250) (732,137) (1,045,103) 8,539,615 1,600,000 8,141,833 1,600,000 (397,782) - - 10,139,615 11,954,379 280,000 10,021,833 10,791,494 280,000 (117,782) (1,162,885) In addition, funds amounting to K2,533,095 were brought forward from the previous year bringing the total funds available to K12,554,928.
Management Response Under collection of revenue amounting to K 1,162,885 The Accounting Authority submitted that the under collection was due to the unforeseen circumstances such as the COVID-19 pandemic which affected almost 80 per cent of the work force, resulting to the large extent the death of the Council Secretary.

The public health policy on curbing the spread of the pandemic had an adverse effect on the performance of the Council in terms of revenue collection.
It worked to the disadvantage of the Council as it had affected half of the workforce which was working on a rotational basis.

 Local Taxes The Council budgeted to raise K20,000 in local taxes against which it raised K710, resulting in a negative variance amounting to K19,290.

The variance was due to non-remittance of personal levy to the Council by the Ministry of Finance and National Planning.
The Council had written to Payroll Management and Establishment Control (PMEC) on remittance of personal levy for the year under review.

 Fees and Charges The Council budgeted to raise K972,264 under Fees and Charges, against which it raised K692,264 resulting in a variance amounting to K280,000.

The variance was due to COVID-19 pandemic which affected the social economic environment, where most business were closed.
68 The Council had since written to all business houses that were doing business in Chipili District to start paying business levy.

 Licences The council budgeted to raise K2,000 under Licences but raised K1,537 resulting in a variance amounting to K460.

The variance was due to COVID-19 pandemic which affected the social economic environment whereby most businesses were closed.
The council had continued to engage the shop owners and local traders through public addresses and sensitisation programmes on the importance of paying Licences and its benefits to the people of Chipili District.

 Levies The Council budgeted to raise K17,000 under levies but raised K6,480 resulting in a variance amounting to K10,520.

The variance was due to COVID-19 pandemic which affected the social economic environment whereby most businesses were closed.
The Council had engaged Ward Development Committees (WDC) in the collection of levies since most of the businesses such as timber processing, crop production charcoal production happened within the communities where the council was indirectly present.

 Permits The Council Budgeted to collect K3,500 under permits but raised K250 resulting in a negative variance amounting to K3,250.
The variance was due to stringent restrictions in various activities due to COVID-19 where the council was indirectly present.

The Council had continued to engage the shop owners and local traders through public addresses and sensitisation programmes on the importance of paying Licences and its benefits to the people of Chipili District.

 Other receipts The Council planned to collect K800,000 under other receipts but it raised K67,863 resulting in a negative variance amounting to K732,137.
The variance was due to some commercial ventures which did not take off during the year under review and the breakdown of the TATA Bus.

Further, the Council suffered a setback on the fish farming venture following an outbreak of a disease which affected the seed (fingerlings) and led the Council to sell off the fish prematurely as was advised Ministry of Fisheries and livestock to harvest the ponds to mitigate the loss of fish.
The Council had since repaired the TATA bus and was due to start the operations.

Further the council had started the block making venture which did not take off during the year under review.

69 In another development of the fish venture the Council had identified the location for new fish ponds to enhance production of fingerlings.
Committee’s Observations and Recommendations The Committee observes with concern that all the revenue streams under the locally generated revenues under performed, and finds this unacceptable and urges the Accounting Authority to put measures in place that will augment the collection of revenue at the Council.

The Committee also urges that the Council must desist from overstating the budget, when it had no capacity to meet the projected targets.
The Committee urges the Accounting Officer to submit supporting documents to the Office of the Auditor General for audit verification.

Operational Matters Failure to Develop an Integrated Development Plan b. i.

The Accounting Authority submitted that the Council did not have the technical support, human resource capacity, financial support and equipment to produce an IDP as it was a costly undertaking.

However, the process of preparing the Integrated Development Plan (IDP) was underway.
The planning survey and issues report was submitted to the Provincial Planning Authority and the IDP team had proceeded with the preparation of the Development Framework.

Further, the Local Government Service Commission had deployed the Town Planner who was working in collaboration with GIZ.

However, in the absence of an IDP the Council was using the Strategic Plan which was valid in the year under review.
The Council had budgeted for the completion of the IDP in the budget year 2023 and by 31st March, the collaborating partners (GIZ) were providing technical support, human resource capacity, financial support and equipment in developing the IDP.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the preparations of the IDP, without any further delay.

The Committee will await a progress report on the matter.

c. Other Operations i.


Failure to Establish and Maintain Cemeteries The Accounting Authority submitted that the Cemetery was not established and maintained because it was not budged for in the 2021 Financial Year.

The settlements of Chipili District were far apart from the council planned area.

The Council had designated land for a cemetery, which was about five Kilometres from Chipili- Mansa Road.
However, the Council applied for Land Development Fund (LDF) from the Ministry of Lands and Natural resources for opening up of the roads in the township and the one leading to the cemetery.

Additionally, the Council had commenced the preparation of the Environmental Project Brief (EPB) for the development of the Cemetery.
Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council has adopted a Laissez Faire attitude on the designation of an area in Chipili District, a Cemetery.

The Committee finds this unfortunate and urges the Council to prioritise the establishment of a Cemetery without delay.

The Committee will await a progress report on the matter.
70 d. Management of Payroll and Other Staff related Matters i Irregular Payment of Salaries The Accounting Authority submitted that the irregular payment of salaries was due to misinformation about the case.

The Committee was informed that on 30th July, 2021, the cited officer tendered a letter of resignation from her employment.

On the second thought, she decided to rescind this decision on 5th August, 2021.
When she reported back to Chipili Town Council, she requested to go on local leave to attend to personal matters and to go on transfer to Luanshya Municipal Council, on exchange basis with the officer who was willing to move to Chipili Town Council.

The leave was dully granted.

However, after the leave ended, the officer immediately reported back to the station and in the process, Local Government Service Commission acted on her request to be transferred to Luanshya Municipal Council, were she was saving.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Unauthorised Sponsorship for Training The Accounting Authority submitted that the unauthorised training sponsorship cited was due to misinformation about the matter.
The cited officer was on 50 per cent partial sponsorship by the Council and was approved by the Local Government Service Commission.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.
iii.

Failure to Confirm Employees The Accounting Authority submitted that the cited employees were recruited prior to the 2021 general elections and after election, the Local Government Service Commission was dissolved.

The Committee was informed that the recommendations for confirmation of the three officers were written and submitted to the Local Government Service Commission immediately after expiry of probation period following a positive performance appraisal test.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

71 Employees without Requisite Qualification The Accounting Authority submitted that the mandate to employ officers in the Local Authorities was vest in the Local Government Services Commission.
Chipili Town Council Received these officers who were deployed to the Council.

Registry Supervisor: The officer had a diploma in records management with TEVETA.

This was the entry qualification for the position of Registry Supervisor according to the Job Description as prescribed by Public Service Management Division (PSMD).
Accounting Officer: The officer held a diploma in Business Administration with National Institute of Public Administration (NIPA) according to the Job Description as prescribed by Public Service Management Division (PSMD).

Clerical Officer: The entry qualification for this position was a grade twelve certificate which the officer held.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to Fill Vacant Positions v. The Accounting authority submitted that the mandate to employ officers in the Local Authorities is vested in the Local Government Services Commission.
Chipili Town Council only received the officers who were deployed by the Local Government Services Commission.

The Committee was informed that the Council wrote to Local Government Service Commission on 12th June, 2022 to declare and submit vacant and funded positions.
The Council had been making follow ups with the Commission to fill up vacant positions and the commission had since filled up the positions of Director of Works, Town Planner, Sub Inspector and Registry clerk and the officers had reported for duty.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Management of Commercial Ventures - Unprofitable Fish Farming Project e. The Accounting Authority submitted that the Council suffered a setback on the fish farming venture following an outbreak of a disease which affected the seed (fingerlings) and led the council to sell off the fish prematurely as was advised by the Ministry of Fisheries and livestock to harvest the ponds to mitigate the loss of fish and in the process the council only realised K75,103 from the sales.
72 Despite the setback, Chipili Town Council had continued with the fish farming venture using its own fingerling production.

Further, the Council was conducting research on how it could incorporate chicken rearing (poultry) and pig farming to boost the venture with an integrated fish farming.

The Council identified the location for new fish ponds to enhance production of fingerlings to reduce on cost of production.
Committee’s Observations and Recommendations The Committee bemoans the loss of public resources on the project and urges the Accounting Authority to conduct fusibility study before venturing into a commercial project.

The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
f. Management of Local Government Equalisation Fund - Misapplication of Capital Funds The Accounting Authority submitted that the misapplication of 20 per cent capital component of equalisation funds was due to the liquidity challenges the Council was facing.

The Council had reimbursed the funds borrowed from Capital Account which were used for operational costs.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

g. Management of Constituency Development Fund Construction of a Three Bedroomed Staff House at Mukanaga Agriculture Resettlement Scheme The Accounting Authority submitted as set out below.

   The two doors at the bathroom and the toilet had been fitted.
The doors to the bedroom closets had been fitted.

The Burglar bars at the two exterior doors, for security, had been fitted.

The Accounting authority also submitted that some items which were cited in the Report were not part of the scope of works.

In addition, the house was located in an area where water was a challenge as the nearest water point was a communal well, which was situated 200 metres downhill.
During the technical appraisal of the project, this water challenge prompted the postponement of including plumbing works and fittings in the bill of quantity.

The scope of works, therefore, did not include the following: 73    fitting of a wash hand basin and a shower in the bathroom; fitting of a cistern and toilet pan; and tiling of the bathroom and toilet rooms.
The Committee was informed that the Council would seek for more funding, for the inclusion of plumbing works under the 2023 Constituency Development Funds component for water supply which would be inclusive of water supply to the house and to other government facilities in the area which included a heath facility, among others.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.
The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Lip Channels were used instead of timber as per bill of quantities Lip channels were used in place of timber trusses which were provided for in the Bill of Quantities as an alternative as they were durable and more resistant to moist conditions.
This variation was authorised after an assessment was done to determine the specifications of the structural equivalent of the timber trusses.

In addition, a cost implication analysis was done and it was determined that the alternative had no cost variation.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
One window frame 2.4metres X 1.5metres was not fitted The windows that were fitted on the house had a slight deviation from the ones provided for in the Bill of Quantities due to their availability locally.

The window fitted in place of the 2.4 by1.2 metres was a 1.8 by 1.5metres which was smaller in width but more in height.
However, full payment was done for all the windows as per provision because the total surface area of the windows supplied was more than the surface area provided (16.45 square meters fitted as compared to 13.26 square meters paid for in the Bill of Quantities).

This variation had no cost implication.

During the period of inspection, the contractor had left site to procure/mobilise materials for the remaining works.
The project had since been completed according to the scope of works and authorised variations made on the project.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Kandakala Primary School office with Strong room The council did not provide a contract, no concrete was put in the strong room, wall on the upper 74 part of the roof was not plastered and painted, no doors were fitted in three door frames, no shelves were put in the strong room, veranda had developed cracks, floor had developed cracks and Y12 was used instead of Y16 for the three steel grill doors.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Contract Document The project agreement/acceptance was in form of a purchase order, with the conditions in the enquiry being part of contract conditions as this was simplified bidding as provided in section 125 of the Zambia Public Procurement Act, No.

12 of 2008.
12 of 2008.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

No concrete was used in the strong room The initial Bill of Quantities did not include concrete works for the strong room but inquiries were made to the contractor on the cost of the works.
The concrete would be done as a variation as it was within the allowable cost of a variation.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Wall on the upper part of the building not plastered and painted The walls on the upper part of the roof had not been plastered during the time of the inspection.
However, the contractor was instructed to plaster and paint the walls.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

No doors were fitted in three door frames The doors were an omission in the Bill of Quantities but had been considered as a variation yet to be executed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

75 No Shelves were fitted in the strong room The shelves would be fitted once the concrete walls for the strong room were in place.

This was to avoid double handling of removing the shelves when installing the concrete walls.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Veranda had developed cracks and floor had developed cracks The project was under its defects liability period and the contractor had been instructed to redo the floor on the veranda and staffroom which developed some cracks due to inadequate curing.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Y12 was used instead of Y16 for the three Steel Grill Doors Y12 bars were used combined with Y16 bars for the grill doors instead of Y16 throughout.

The contractor had been instructed to replace the Y12 bars as they worked on the floor.
However, the Council had not paid for the works in question done so far.

The Committee was informed that the Council shall engage in exchange of notes before execution of projects in order to incorporate requirements by the stakeholders in this case District Education Board Secretary Office.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the appropriate grill doors are fitted without fail.

The Committee will await a progress report on the matter.
Failure to Remit Statutory Obligations Managing of Liabilities h. The Accounting Authority submitted that the failure to remit Statutory Obligations was due to the liquidity challenge the Council was facing.

However, Chipili Town Council had entered into an agreement with NAPSA to liquidate the outstanding statutory contributions amounting to K262,764.13 plus cumulative penalties amounting to K1,631,974.37, bringing the total sum owed by the Council to K1,864,738.50.
The Council had continued paying latest National Pensions Scheme Authority monthly statutory contributions as and when they fell due.

The Council had committed to liquidate outstanding contributions of K1,864,738.50 in monthly instalments; the initial instalment of K15,000 was paid on 15th October, 2022 and subsequent monthly instalments of K10,000 with effect from 30th November, 2022.
76 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the liquidation of outstanding statutory obligations as the Council was in gloss violation of the workers Conditions of Service and the relevant legislation.

The Committee will await a progress report on the matter.

Failure to Settle Staff Obligations e. The Accounting Authority submitted that the failure to pay Staff Obligations was due to the liquidity challenge the Council was facing.
All the outstanding Leave terminal benefits had been cleared, these were outstanding benefits for retired and deceased officers.

Further, all outstanding settling in allowances for new and transferred officers had been paid in full.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to Submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Choma Municipal Council Paragraph: 19 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K45,863,923 against which amounts totaling K28,297,222 were received and generated resulting in a negative variance of K17,566,701.

See table 1 below.
See table 1 below.

77 Table 1: Budget and Income In addition, funds amounting to K6,350,177 were brought forward from the previous year bringing the total funds available to K34,647,399 during the period under review.

Management Response Local Taxes The Accounting Authority submitted that the cited negative variance of K1,995,054 was on account of the following; i. delayed approval of supplementary valuation roll of rental value of K921,810.90 by the rating tribunal ii.
over budgeting by including government and council properties.

It was submitted that the supplementary valuation roll had been approved and implemented; and the Council had bought two vehicles to enhance revenue collection.

The Committee was informed that business houses and rate payers were continuously being engaged and sensitised through public forums and through Choma chamber of Commerce on the importance of paying municipal taxes.
The Committee was also informed that the Task force revenue team was in place and working; and the Council was periodically cleaning up its databases in order to budget realistically.
Fees and Charges It was submitted that the cited negative variance of K9,663,499 was on account of the following; 78 No.Source of Funds BudgetK IncomeK VarianceK Locally Generated1Local Taxes5,676,260 3,681,206 1,995,054- 2Fees and Charges14,379,026 4,715,527 9,663,499- 3Licences2,445,100 570,707 1,874,393- 4Levies1,560,880 1,645,754 84,874 5Permits1,377,237 1,020,323 356,914- 6Commercial Venture700,000 - 700,000- 7Other Receipts210,500 79,775 130,725- Sub Total26,349,003 11,713,292 14,635,711- National Support8Local Government Equalisation Fund15,994,920 13,377,571 2,617,349- 9Constituency Development Fund3,200,000 3,206,359 6,359 10Other Grants320,000 - 320,000- Sub Total19,514,920 16,583,930 2,930,990- Total45,863,923 28,297,222 17,566,701- i. ii over-budgeting of K13,725,000 for plots under capital receipts/charges in anticipation of Memorandum of Understanding (MoU) with Hachi Innovations Solution on re- planning farm No.
L/4531/M; anticipation of K6,005,000 from the MoU with ZESCO over 150 plots for ZESCO staff , but the Council only received K2,067,000; and iii.

K323,000 was garnished by the ZRA.

It was also submitted that the Council had prepared a more realistic and consultative budget in 2023, based on complete and updated databases.

The Council had conducted land audit and the plots would be re- advertised to the general public including the 90 plots which were reserved for ZESCO.
The Council had prepared a more realistic and consultative budget in 2023 based on complete and updated databases.

Licences It was submitted that the cited negative variance of K1,874,393 was on account of having prepared an unrealistic budget.

It was submitted that the Council had prepared a more realistic and consultative budget in 2023 based on complete and updated business databases.
Levies The Committee was informed that the cited positive variance of K84,874 was due to enforcement by the revenue Task Force and compliance by business community.

The Task force had continued to sensitise the business community to settle their bills for required municipality services.

Permits It was submitted that the cited negative variance of K356,914 was on account of having prepared an unrealistic budget.
The Council had prepared a more realistic and consultative budget in 2023 based on complete and updated business databases.

The Council had prepared a more realistic and consultative budget in 2023 based on complete and updated databases.

Commercial Venture It was submitted that the cited negative variance of K700,000 was in the anticipation of revenue after completing the renovation of the lodge (Choma Executive Lodge).
It was submitted that the lodge was officially opened in July, 2022 and the collection was K479,453.38 as at 31st December, 2022.

Further the Council was opening a restaurant at the new bus station to enhance revenue and all the equipment had been purchased for the same.

79 The Council would continue to venture into more income generating ventures to broaden the revenue base.
Other Receipts It was submitted that the cited negative variance of K130,725 was on account of having not been awarded a contract on way leave by ZESCO Limited.

The Council had prepared a more realistic and consultative budget in 2023 by excluding the budget for the way leave.

The Council would continue engaging ZESCO limited for a possible award of a contract on way leave in the future to enhance our local revenue.
Local Government Equalisation Fund It was submitted that the cited negative variance of K2,617,349 was on account of deductions at source for union dues, audit fees and insurance for the fire tender.

The Council would continue engaging the parent Ministry for possible increment as the Equalisation fund was insufficient to cater for wages and statutory obligations on monthly basis.
Constituency Development Fund (CDF) It was submitted that the cited positive variance of K6,359 was on account of interest earned on the CDF accounts.

The Council had transferred all interest earned on the CDF main account as directed by the Ministry.

Other Grants It was submitted that the cited negative variance of K320,000 was on account of having not received funding for grant in lieu of rates.
The Council had since reduced the 2023 budget on other grants and was engaging the Ministry for consideration.

The Council would continue engaging the parent Ministry for possible funding on grants in Lieu of rates.

Committee’s Observations and Recommendations The Committee expresses concern that the Council overstated the budget and had not done due diligence when projecting the collections on the revenue streams included in the budget.
Particularly, the Committee expresses concern at the failure to collect revenue from ZESCO limited regarding a way leave contract and the sale of plots.

In this regard, the Committee urges the Accounting Authority to be proactive and ensure that measures are put in place to collect the said revenue, without delay.

The Committee will await a progress report on the matter.

b.

Operational Matters i.


Failure to Regulate Street Vending It was submitted that the Council had put in place the following interventions; 80 (i) (ii) (iii) street traders were regularly being removed from the roads; trading spaces at the Green Market had been identified; and street patrol and civic leaders engagement had continued.

The Council would endeavour to periodically engage traders along the main road to trade in designated places of trading to avoid any risk.
Committee’s Observations and Recommendations The Committee finds the failure by the Council to manage street vending unfortunate and urges the Accounting Authority to ensure that the proposed measures are realised without delay.

The Committee will await a progress report on the matter.

ii.

Environmental Management Management of Solid Waste at the Harmony Dumpsite   The dumpsite was not fenced for protection and from access by unauthorised persons.
The Council did not compact the waste with a layer of soil thereby exposing the community to health hazards.

It was submitted that the access to the dump site passed through individual farm land, (settlers) as a result there were a number of lengthy negotiations with farmers to secure access.

It was submitted that the following actions were undertaken; i. ii.

iii.

iv.
v. access to the site was secured following successful engagements; the area was planned to commence constructions; the Council had written to the Treasury through the Ministry of Local Government to utilise the un-spent funds in 2022 budget under dump site capital budget line to start fencing the dump site; construction of the wall fence expected to be completed by end of 2nd Quarter of 2023, once authority was granted to utilise funds; and the Council shall ensure that the dump site areas were protected and guarded as per ZEMA guidelines.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the dumpsite is designated without delay.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Accounting Irregularities Missing Receipt Books c. i.

It was submitted that the matter of two receipt books No.
5719601 to 5720000 and 4593601 to 4594000 had been escalated to the investigative wings for investigations and possible collection.

Revenue Agency contract had been terminated for both agents namely Hitler Mbambo and Grant Hantuba.

81 It was also submitted that no receipt books were issued before returning the one obtained earlier.
It was further submitted the Council had automated the system and receipts from the Ministry of finance were used as control slips and were kept in the strong room for safety keeping under the custody of the accountancy section.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the matter is followed up with the investigative wings, without delay.
The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Delayed Banking It was submitted that the delayed banking was as a result of non-availability of banking agency services in some of the remote revenue points.
The Committee was informed that the Council had opened an account with Zanaco bank, which had agency services even in remote areas for depositing by revenue collectors in remote revenue collection points.

The Council was further exploring the possibility of using kazang platform, for use by revenue collectors.

Management has put measures in place by ensuring Revenue collectors were depositing money as required.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.
iii.

Unaccounted for Revenue - Meat inspection The Accounting Authority submitted that the variance of K33,728 was on account of failure to reconcile inspection records with abattoir owners.

The inspection sheet was signed by abattoir owners to confirm number of inspections on bovine, caprine and porcine.

The Council health inspectors submitted the abattoir inspection sheet to finance department on a weekly basis for invoicing on monthly basis.
The Council had introduced the abattoir daily slaughter inspection sheet to be submitted to finance for invoicing to the four abattoirs in the district.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

82 iv.
82 iv.

Failure to Collect Revenue: Leased Properties  It was submitted that the rental charges were not collected at the time of the audit, on account of the following: i. ii.

some tenants vacated from the council properties without notifying the council in line with the tenancy agreement; and The Council was waiting for the response from tenant owing K189,000 through the KBF and Partners before the matter was escalated to the courts of law.

The Management had undertaken the following: i. ii.

iii.
iii.

collected K48,978 out of K280,141, leaving a balance of K231,163; demand notices to clear the outstanding K75,231 had been served to clients, failure to pay the matter would be taken to Court; waiting for the response from tenant owing K155,932 through the KBF and Partners before the matter was escalated to the courts of law.

The Management would do monthly reminders to the clients to avoid accruing more debt on leased properties.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Billboards  It was submitted that Billboards fees were not collected at the time of audit for the following reason: i.
From the total amount captured as uncollected K135,906 were billboards belonging to Government institutions.

Management had undertaken the following steps; i. ii.

K136,566 was collected out of K1,223,079, leaving a balance of K1,086,513; the Council had issued invoices for the outstanding balance of K950,607 and was making follow ups.

The Council would ensure that a clean database for billboards was maintained to make it easy to collect the amount owed and remove all billboards for non-compliant clients.
Committee’s Observations and Recommendations The Committee finds the under collection unacceptable urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

83 Management of Payroll and Other Staff Related Matters Failure to Fill Vacant Positions d. i.
It was submitted that the Chief Building Inspector, Senior Quantity Surveyor and Station Fire Officer Positions were not for municipality Councils in line with the 2012 harmonisation of salaries and conditions of service for local authorities in Zambia.

Therefore, positions were filled based on levels of demand for the services and ability by the local authority to meet staff obligations from locally generated resources.
It was submitted that key positions had since been filed by the Local Government Service Commission.

Management would continue engaging the LGSC on critical vacant positions periodically through quarterly staff returns.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Over Employment of Staff The Accounting Authority submitted that the over employment was as a result of staff coming in on transfers.

In this regard, Excess staff had been recommended to the Local Government Service Commission for transfers.

One Assistant procurement officer had been transferred to another local authority by the LGSC and One Revenue Collector had been re-designated and transferred to another Council.
The Council had engaged the Local Government Service Commission for the remaining staff to be transferred.

Management would continue submitting staff returns to the LGSC on critical vacant positions for division I and II.

Local Government Service Commission (LGSC) had successfully formed a Human Resource Management Committee who had been delegated to handle staff related matters.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter, without delay.

The Committee will await a progress report on the matter.

iii.

Employment of Casual Workers The Accounting Authority submitted that the engaged thirty-two casual employees was on account of the fact that the Council had inadequate manpower in key areas such as bus stations and markets.
84 The Council had followed the Call Circular No MLG/52/1/6, which the Ministry had authorised Councils to engage officers on oral contract till authority was granted for pensionable establishment.

Management would continue conducting staff audit for division IV for possible alignment to cabbage collection, sanitary and street cleaners.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Irregular Payment of Overtime Allowance iv.

It was submitted that the payment was erroneously paid to Division I.
The recovery had been effected in the February, 2023 payroll for the officers erroneously paid and the Council had stopped paying overtime to officers in Division I.

The Council would ensure that it followed the Conditions of Service.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to institute disciplinary action against officers who approved the payment of allowances, without fail.

The Committee will await a progress report on the matter.
Irregular Payment of Salary to a Convicted Officer v. It was submitted that the officer appealed to the High Court hence maintained on the payroll.

The officer was no longer on the payroll and the recommendation letter for dismissal had been submitted to the Local Government Service Commission.

The Council would ensure that any similar matter would be expedited as quickly as possible.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

vi.

Failure to Confirm Officers It was submitted that five out of eleven officers had been confirmed, which included Senior Valuation Officer, Accounts Officer, Chief Committee Clerk, Senior Human Resource Officer, and Systems Analyst.
The Council was consistently engaging the Local Government Service Commission to ensure that the remaining officers were confirmed.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter, without delay.

The Committee will await a progress report on the matter.

85 vii.

Failure to Insure Fire Officers It was submitted that the Council adhered to fire service condition of service on fire officers.
The fire tender was insured comprehensively which covered all fire officers undertaking operations using the equipment.

Further the officers were paid risk allowance in line with the condition of service.

The Council would ensure that the Fire tender was comprehensively insured.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Procurement of Goods and Services e. i. Unauthorised Expenditure It was submitted that the cited unauthorised expenditure amounting to K31,850 was on account of the following: i. ii.

iii.
iii.

the Council requested for a needs assessment for five days to set up a Local Area Network (LAN) in order for Choma Council to connect to Government Wide Area Network (GWAN) under Phase 2 project; cabinet approved five days for needs assessment and installation; and after the needs assessment report, the officers recommended to do installation for fifteen days with an additional officer.
The authority was sought for fifteen days from the Secretary to the Cabinet for the officers who were on-the-ground.

The Council would ensure that all Call Circulars were followed accordingly.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Management of Stores - Unauthorised Fuel Drawings f. It was submitted that the fuel costing K8,225 involving seventeen transactions was irregularly drawn by motor vehicles not appearing on the Councils’ fleet on account of the following: i. ii.

iii.

iv.

the Council used the Ministry of Agriculture vehicle with registration No.

ABM 7591 for distribution of seeds and fertilizer under Scrika project due to inadequate vehicles; the Council used the ECZ vehicle with registration No.
ABZ 4012 to do the inspection of polling stations at the time funding delayed; the registration No.ALE 1632 was supposed to be captured as ALE831.

However, the vehicle was used by the PLGO for CDF monitoring in Mbabala and Choma Central Constituencies; the registration No.BAC 2519 was supposed to be captured as BAK 2519, this the Council vehicle for inspection under the Department of Public Health; 86 v. vi.

the registration No.


BAE 709 was a Njase Girls Secondary School bus which used to ferry councilors for a site visit within Choma District; the registration number ZP 2115 was a state Police vehicle used to inspect public nuisance of Shabeen, Night Clubs and Bars for noise pollution and non-compliance with Public Health Act.

At the time of the audit, the officer who was handling fuel requisitions was out of station.
However the Letters of authority and vehicle justifications were available for verification.

The Council had since budgeted for procurement of a bus in 2023 expenditure estimates.

The Council would ensure that stores requisitions, fuel coupons and disposal details were properly filed and accounted for.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Management of Assets Failure to Claim Insurance g. i.

It was submitted that the Ministry of Local Government and Rural Development was handling the matter with Zambia State Insurance Corporation (ZSIC).

The claim was submitted to the Ministry of Local Government and Rural Development and the claim was escalated to Zambia State Insurance Corporation (ZSIC).

The fire tender driver was charged for dangerous driving.
The Council would continue engaging the Ministry of Local Government and Rural Development on the repair of the fire tender.

Committee’s Observations and Recommendations The Committee bemoans the delay to insure the fire tender and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

It was submitted that the failure to claim was on the account that: Failure to Claim Insurance i.

Mean wood General Insurance had failed to reconcile the account for the said vehicle of how much insurance was supposed to be paid before the accident occurred.

The Council engaged Mean wood General Insurance to repair the insured vehicle.

All vehicles insured under ZISC had their own insurance claim value.

87 h. i.
87 h. i.

Management of Local Government Equalisation Fund Misapplication of Equalisation Funds  Failure to Transfer Funds to Capital Project Account It was submitted that the un-transferred funds were used to pay salaries and administrative expenses.

Management had completed the land audit exercise and funds raised from the sale of plots which would be transferred to the Capital Project Account.

The Council was transferring 20 percent of LGEF to Capital Project Account.
Committee’s Observations and Recommendations The Committee expresses displeasure at the misapplication of the capital funds.

In this regard, the Committee urges the Accounting Authority to desist from the practice and ensure that the funds are reimbursed without fail.

The Committee will await a progress report on the matter.
Failure to Reimburse Borrowed Funds  It was submitted that Management had reimbursed K500,000 to GOPA Infra GmbH SLG III Escrow ABSA Bank account as at December, 2022 and the balance K600,127.88 would be reimbursed from the sale of plots.

The Council had stopped borrowing from Project Account.

Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to reimburse the funds.
In this regard, the Committee urges the Accounting Authority to desist from the practice and ensure that the funds are reimbursed without fail.

The Committee will await a progress report on the matter.

ii.

Questionable Payment Construction of Wall Fence and Guard Room at Harmony Dumpsite It was submitted that this was a labour based contract to be undertaken by the contractor.

The project was at procurement stage.

All projects would be procured based on a full Contract.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.

Weaknesses in Managing Constituency Development Fund Projects Unspent Funds It was submitted that the K3,544,364 was on account of the following: i. ii.
projects delayed in the year 2021 due to elections as Councils got dissolved so were Constituency Development Fund Committees; the Council received the funds on 1st October, 2021, five weeks after elections, but the Constituency Development Fund Committee had not yet been constituted; and 88 iii.

delaying of approval of projects from the Ministry of Local Government and Rural Development.

K4,783,995.95 as at 31st December, 2022 had been spend on Choma Central and Mbabala projects.
Council would continue giving advice on engineering estimates on projects to members of the CDF committee.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to Implement Approved Projects iv.


It was submitted that the Council was unable to implement the projects on account of insufficient funds allocated to the construction of a maternity wing at Batoka Clinic and all the borehole projects.

The relevant stakeholders had been informed to make an application for additional funding to meet the bidders prices.

The Council had procured a Tractor for Mbabala Chiefdom.
The Council would continue rendering advice on engineering estimates to relevant stakeholders of CDF.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the projects are implemented without any further delay.

The Committee also urges that the supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Failure to Claim an Advance Payment v. It was submitted that the contractor paid K2000; and for the remaining balance of K4,000, Legal Department had written a demand notice to the contractor to liquidate the final balance.

The Council had enhanced monitoring and supervision of Projects.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and undertake due diligence before awarding contracts with regard to CDF and other Council projects.
The Committee also urges that the remaining balance must be collected without fail.

The Committee will await a progress report on the matter.

i.

Weaknesses in Managing Liabilities Failure to Remit Statutory Obligations With regard to the statutory obligation outstanding balance of K22,494,348, the following was submitted: 89 i. the liquidation plan for payment of debt was in place and payments were been made to statutory organisation as and when funds were available; ii.
Council made a payment of K323,000 to Zambia Revenue Authority and a minimum of K20,000 had been set aside in the 2023 payment plan; iii.

Council had reconciled with NAPSA and a payment plan had been made to liquidate the principle and a minimum of K20,000 was allocated; iv.

penalties were being handled through the Ministry of Local Government and Rural Development to reduce the outstanding bills; v. LASF/ZCTU funds were deducted at source from the Ministry; and vi.
NHIMA bill was reconciled in 2022 and K131,094.80 had been paid.

Council had put in place measures to liquidate all statutory obligations as and when funds were available.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of statutory obligations; in line with the employees Conditions of Service and avoid the violation of regulations.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

vii.

Failure to Settle Staff Obligations It was submitted that staff obligations had been settled as set out below.

i. Terminal benefits of K89,521 had been paid as at 30th September, 2022. ii.

iii.
iii.

Council resolved that retirees on the payroll be paid K20,000 monthly through the Settling in allowance had been paid in full through the payroll.

payroll.

iv.

Those retirees’ terminal benefits not on the payroll were allocated K100,000, on monthly basis based on a payment plan.

v. Council had made a request through the Ministry of Local Government and Rural Development for grants-in-lieu of rates to liquidate terminal benefits.
Council had put in place measures to liquidate staff obligations as and when funds were available.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of staff obligations; in line with the employees Conditions of Service and avoid the violation of regulations.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

90 Chongwe Town Council Paragraph 20 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K45,263,186 against which amounts totaling K36,155,724 were received and generated resulting in a negative variance of K9,107,462.

See table 1 below.

Table 1: Budget and Income No.
Source of Funds Budget K Income K Variance K Locally Generated Owners Rates Local Taxes Fees and Charges Licenses Levies Permits Charges Other Income Sub Total National Support Local Equalisation Fund 10 Grants in Lieu of Rates 11 9 Constituency Development Fund Sub Total Total Government 10,278,854 253,530 11,788,696 330,875 4,113,482 1,626,750 5,239,250 205,500 33,836,937 3,878,300 178,555 7,974,362 350,200 5,056,550 1,437,409 6,331,036 168,668 25,375,080 (6,400,554) (74,975) (3,814,334) 19,325 943,068 (189,341) 1,091,786 (36,832) (8,461,857) 9,626,249 9,180,644 (445,605) 200,000 1,600,000 - 1,600,000 (200,000) - 11,426,249 45,263,186 10,780,644 36,155,724 (645,605) (9,107,462) In addition, funds amounting to K586,362 were brought forward from the previous year (2020) bringing the total funds available to K36,742,086.
Owners Rates, Local Taxes, Fees and Charges and Permits.

Management Response i.

It was submitted that the budget was based on actual receivables from the extended 2014 valuation roll.

The Council faced various challenges amongst them, the first wave of the COVID-19 pandemic which made it difficult to collect taxes due to the Council and enforce the law as various companies operating in the airport and hospitality industry were closed for some time and others faced reduced working hours.
91 The National Institute of Scientific Research (NISR) had been owing the Council K4,149,648.10, thereby resulting in the huge uncollected property rates.

Furthermore, Zambia China Economic and Trade Zone Development Limited (ZCCZ) had equally a huge amount outstanding to the tune of K1,796,827.50 of which the Council gave 70 per cent remission (rebate) amounting to K1,257,779.25, leaving a balance of K539,048.25 which was paid in full.
National Airport Corporation (NAC) also had a huge outstanding debt of K3,588,975.78 of which the Council gave remission (rebate) of 30 per cent amounting to K1,076,693.25 leaving a balance of K2,512,283.05 of which K1,256,141.25 had been paid for the 2021 outstanding balance.

All the remissions (rebates) were given through Council resolutions.
Residential areas were also not spared as almost all areas where bills were delivered, the Council faced challenges in realising the anticipated revenue despite several follow ups, issuance of demand notices.

It was also submitted that a total of K3,636,433.50 was collected on rates, permits, Fees and Charges for the financial year under review.
Further, the other activities that the Council undertook to improve the revenue base were as follows:    the Council had renovated the rest house to increase revenue from lodging and restaurant; the Council had employed six Revenue Collectors; and the New Valuation Roll for 2019 to 2024 is in place, of which billing is underway.

The Council had continued to engage clients to ensure that it realised the much-desired revenue.
Such engagements included announcements on Chongwe Radio as well as announcements on mega phone around the Townships.

The Council will utilise the ICT Technology to increase payment platforms such as Airtel, Zamtel and MTN Money payment methods.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to engage the Court bailiffs on the companies that were failing to pay, without delay.
The Committee also urges the Accounting Authority to avail supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Other Income ii.
Other Income ii.

Non revision of the budget and misclassification of income received This vote comprised of income from ZESCO Wayleave contract which was budgeted at the previous year’s contract sum of K205,500 however the actual contract amount for 2021 was K180,033 after ZESCO gave three lines to other contractors resulting in a variance of K25,467 plus income received misclassified as other charges of K11,365 which was recorded as not paid.
The Council had since received the entire contract sum amount K180,033 and reclassified the Income received to the correct account.

92 The Council will ensure that all due debtors contracts were followed up to ensure that income is received on time, recorded and classified to the correct account.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for auditor General for audit verification.
The Committee will await a progress report on the matter.

Environmental Management - Failure to Manage Dumpsite b. Unfenced dumpsite It was submitted that the failure to fence the dumpsite was due to the fact that the initial erected wire fence was vandalised by the community.

The Council had budgeted for the construction of the fence in the 2023 budget.

After the budget was approved, the Council will commence the fencing of the dumpsite.
The Council will ensure to adhere to the Environmental Management Act, No.12 of 2011.

No Warning Signs It was submitted that the failure to display warning signs at the dumpsite was as a result of the community vandalising the initial erected warning signs .

The Council had since displayed the warning signs to warn the general public about the existence of the dumpsite and restricted access of unauthorised personnel.
(Warning dump site signage Pictures) The Council will ensure to adhere to the Environment Management Act, No.12 of 2011.

Uncompacted Dumpsite It was submitted that the failure to compact the dumpsite was due to financial challenges that the Council faced.

The Council had since compacted the dumpsite to satisfactory standards.
93 compacted damp site picture before compacting Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of The Council would ensure to adhere to the Environment Management Act, No.12 of 2011.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Payroll and Other Staff Related Matters Failure to Fill Vacant Positions c. i.
It was submitted that authority to recruit/appoint officers in Local Authorities solely rested with the Local Government Service Commission, as provided for in the Constitution of Zambia (Amendment) Act, No.2 of 2016.

Therefore, the role of every Local Authority is to only request the Local Government Service Commission to recruit against the vacant positions which councils had budgeted for in that particular year.
The Commission reserved the right to recruit at their own pace and deploy as requested by the councils.

The councils had no much of a hand in the process of recruitment.

The Council had been requesting and will continue to request the Commission to fill vacant and funded positions.

The Council endeavored to communicate with the Local Government Service Commission to request the Commission to fill the vacant and funded positions.
94 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for auditor General for audit verification.

The Committee also urges that the Commission be re-engaged on the matter, without delay.

The Committee will await a progress.

iii.

Over Employment of Staff It was submitted that the authority to recruit rested with the Local Government Service Commission.
The role of the Council in avoiding the existence of excess staff only went as far as informing the Commission of the excess staff deployed to the Council and not to send the employees away.

However, the Commission had for a long time known of the existence of excess staff deployed to the councils and they had continued to manage through re-directions and transfers and the Council waited on the actions of the Commission.
The Council had been communicating with the Commission as well as the Provincial Local Government Office occasionally on the issue of excess staff by means of a report and Full Council booklet and staff returns, respectively.

The Council will endeavor to communicate with the Local Government Service Commission as well as the Provincial Local Government Office to help resolve the issue of excess staff at the Local Authority.

The Committee will await a progress report on the matter.

d. i.
d. i.

Management of Fire Services.

Inadequate Protective Equipment and Clothing - Fire fighters It was submitted that the failure to provide adequate protective equipment and clothing was due to financial challenges.

The Council had since procured forty combat uniforms for the fire fighters at a total cost of K 45,200.
Twenty combat uniforms were procured from Eskama General Dealers for K18,600 on 18th April, 2022 and the other twenty combat uniforms and boots were procured from Lusaka Clothing Factory for K26,600, on 30th December, 2022 which brought the total PPEs to fifty-one which is equivalent to the total number of officers.
The Council will ensure that protective equipment and clothing was included in annual budgets as a recurrent expenditure to ensure that officers had adequate personal protective equipment (PPEs) and equipment for fire and rescue operations at all times.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and submit supporting documents to the Office of the Auditor General for auditor General for audit verification.
The Committee will await a progress report on the matter.

e. Management of Local Government Equalisation Fund - Failure to Undertake Planned Activities 95 Rehabilitation of Police Station (Council Building) The Council initially planned to do an overhaul renovation of the Police Station.

However, this caused some delays as the police needed to do some logistical movements to provide room for the contractor to mobilise on site.
The Council had since commenced the renovation of the Police Station such as the toilet at a total cost of K48,951 and had allocated K131,049 to the ceiling and the tiles which was work in progress.

Pictures of ceiling Installation works under way at the police station Committee’s Observations and Recommendations The Committee urges the Accounting Authority to desist from taking action after the audit process.
The Committee also urges that submit supporting documents be availed to the Office of the Auditor General for auditor General for audit verification.

The Committee will await a progress report on the matter.

Construction of the Market The Council did a virement for the construction of the Market to Construct the Fire Station of which K450,000 went towards the construction of the Fire Station which is at roofing level.

The construction of the Market had been budgeted for in the 2023 budget.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for auditor General for audit verification.

The Committee will await a 96 progress report on the matter.

Renovation of Council Houses It was submitted that the houses were not renovated as they were occupied by the tenants and the Council was waiting for the lease agreement to expire.
The Council had since undertaken renovation works and had spent amounts totaling K120,896.60, leaving a balance of K29,103.40.

The council will make sure that planned activities were undertaken as and when the funds were received for the projects.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for auditor General for audit verification.

The Committee will await a progress report on the matter.
f. Management of Constituency Development Fund i.

Failure to utilise CDF The 2020 CDF Projects funding was received and after which all the laid down procedures were followed, up to the approval of the projects by the Ministry of Local Government.

Upon commencement, some projects were completed but the Council was unable to complete all the projects within time as the approval period and implementation period was compressed, hence projects flowing into the next financial year of 2022.
With the coming in of the new office bearers, another project list was submitted and approved, superseding the old one.

The Project list that was approved had since been implemented and completed as per attached project details report.

The council will ensure close monitoring and close supervision of the CDF Projects to ensure that the projects were running on course as stipulated in the project contract, so that the Projects were delivered on time.
Delayed completion of Mwalubemba Clinic - Chinkuli Ward (2020) The 2020 CDF Projects funding was received and after which all the laid down procedures were followed, up to the approval of the projects by the Ministry of Local Government.

Upon commencement, some projects were completed but when the new CDF Committee needed to do a due diligence in order to clear the project for completion, during this period, the contractor demobilised from the site hence the delays to complete the project.
However, after elections, the new CDF Committee was ushered in and did a due diligence on these projects and cleared them for completion.

The Project had since been completed.

The Council will make sure that planned activities were undertaken as and when the funds were received through close monitoring and supervision of the projects so that they were delivered 97 within the stipulated time in the project contract.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for auditor General for audit verification.

The Committee will await a progress report on the matter.

g. i.

Management of Liabilities Failure to Remit Statutory and Other Obligations It was submitted that the none payment of statutory obligations was due to financial challenges that the council was facing.
The Council has entered into a payment plan and out of a total of K46,035,866 being owed only K6,573,698.01 had been paid, leaving a balance of K39,462,167.99 as tabulated below: NO 1 2 3 4 5.

6.

7.
6.

7.

Details ZRA NAPSA LASF FIRESUZ ZULAWU FUNERAL SCHEME MEDICAL INSURANCE TOTAL Amounts Owed Amount Paid 14,903,631 29,186,840 1,004,806 66,194 237,972 214,909 4,908,534.25 476,710.56 539,151.34 56,281.19 237,972 82,887.99 Balance 9,755,138.75 28,710,128.44 465,654.66 9,912.81 - 132,022.01 421,514 272,160.68 149,353.32 46,035,866 6,573,698.01 39,462,167.99 The council will endeavor to adhere to the governing rules for the payment of statutory obligations.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the settlement of outstanding liabilities without delay.

The Committee will await a progress report on the matter.

ii.

Failure to Settle Staff Obligations It was submitted that the none payment of statutory obligation was due to financial challenges that the council was facing.

98 No.
98 No.

Type of Debt 01.01.2021 K Total K K 31.12.2021 Balance as at Obligations for 2021 Cumulative Payments Balance as at 1 2 Terminal Benefits 725,442 Settling In 1,635,501 K 170,012 274,768 895,454 1,910,269 391,509 1,026,887 K 503,946 883,382 Allowance Total 2,360,943 444,780 2,805,723 1,418,396 1,387,328 The Council had entered into a payment plan and out of a total of K1,387,237 being owed only K1,072,070.86 had been paid leaving a balance of K315,257.14 as tabulated below.
The Council will endeavor to ensure that it expanded and mobilised its revenue bases and met its obligations promptly as and when they fell due to avoid such recurrences.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the settlement of staff outstanding obligations as failure to do so was in violation of the workers Conditions of Service.

The Committee will await a progress report on the matter.
Gwembe Town Council Paragraph 21 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K13,923,599 against which amounts totaling K12,231,749 were received and generated resulting in a negative variance of K1,691,850.

See table 1 below.
See table 1 below.

99 Table 1: Budget and Income In addition, funds amounting to K4,488,525 were brought forward from the previous year bringing the total funds available to K16,720,274.

Management Response Local Taxes It was submitted that the main cause for the under collection was owing to the expired valuation roll.

The Council had instituted the process of updating the valuation roll which was expected to be awarded by 28th February, 2023.
The Council would ensure making budgetary provision for property rates under local taxes which were based on the valid valuation roll or where there was assurance of an award.

The Council would also endeavour to ensure the timely updating of the valuation roll.
Fees and Charges: The Council under collected under fees and charges due to the following reasons: a. b. c. the Council had acute challenges of transport for revenue collection programmes; inaccessible areas of the district due to very bad roads such as Simulilika and Kkota Kkota, among others.

The poor road network was a major challenge for revenue collection programmes; and the COVID-19 Pandemic had an effect on some business houses as they had either closed down or had relatively no business at all.
The Council had provided resources to procure the vehicle dedicated for revenue programmes which was in place.

The Picture below refers for the revenue vehicle.
100 No.Sources of FundsBudget KIncome KVariance KLocally Generated1Local taxes 326,922 56,545 (270,377) 2Fees and Charges 1,168,391 343,577 (824,814) 3Licences 22,500 8,850 (13,650) 4Levies 733,336 543,518 (189,818) 5Permits 98,800 28,600 (70,200) 6Commercial Venture 181,000 138,146 (42,854) 7Other Receipts 23,000 12,210 (10,790) Sub total2,553,949 1,131,446 (1,422,503) National Support8Local Government Equalisation Fund9,569,650 9,400,303 (169,347) 9Constituency Development Fund1,600,000 1,600,000 - 10Other Grants200,000 100,000 (100,000) Sub total11,369,650 11,100,303 (269,347) Total13,923,599 12,231,749 (1,691,850) The Council has also repaired some motor bikes which were also used for revenue programmes especially for far reaching places.
The Picture below depicts the motor bikes engaged to revenue programmes.

The Council had also contracted revenue agents from the Ward Development Committees who were mainly domiciled from the respective wards.

This had been with a reason to tap revenue that was in far reaching areas.

The subsequent budget (2022) had been adjusted downwards from K1,168,391 in 2021 to K519,650 in 2022 and K621,665 in 2023, according to the collectable revenue under fees and charges.
The Council will always endeavor to ensure that the revenue vehicle bought was dedicated to revenue activities.

The Council will also be updating its revenue database of the district to ensure that the areas that had potential (Revenue) were immediately included in the database and attached necessary revenue agents.
Licenses The Council recorded an adverse variance on the licenses owing to the following reasons: i. the council had acute challenges of transport for revenue collection programmes which made it very difficult to be mobile in all parts of the district in collecting the needed revenue; 101 ii.

the impact of COVID-19 at the time had hit the few business houses adversely that they faced closure while others literary struggled to survive making it difficult for the Council to collect the Trading licenses; iii.
inaccessible roads.

Some places in the district were not easily accessible due to bad road.

In view of this, the Council had put in place revenue agents to meet the revenue collection needs for far fetching places and in places that had very bad road.

The council had also procured earth moving equipment from the 2022 CDF, dedicated for road works in the district.

The Council had a revenue vehicle and had managed to repair three motor bikes to supplement on the transport needs of the revenue section .
The Council would always endeavor to ensure that the revenue vehicle bought was dedicated to revenue activities.

The Council would further be updating its revenue database of the district to ensure that the areas that had revenue potential were immediately included in the database and attach necessary revenue agents.

Levies: The under collections was mainly attributed to the following: i. ii.
the fish bans that were imposed in the year 2021 adversely affected the collection of fish levy which was one of the main reliable sources of revenue for the Council; the Council could not conduct water transport as the boat had broken down ,which otherwise could have enhanced revenue collection from the waters of Lake Kariba in respect to Kapenta and Fish Levies; iii.
the Council could also not maximise in revenue collection in respect to Livestock Levy because of the ban that was imposed on movement of animals which mainly included Pigs and Cattle.

This also affected adversely the planned revenue from being realised; and iv.

the Council had also made a provision of collecting rig levy under fees and charges which unfortunately was not actualised in the year under review because more sensitisation programmes needed to be made.
The Council had since repaired the boat and the revenue section was undertaking the revenue programmes aligned to fish and Kapenta levies.

The Council had engaged the Ward Development Committee who had been tasked to collect levies from far places on a commission basis.

102 The Council had a dedicated revenue vehicle in place that had since made mobility easy.
The Council had further instituted the revenue Task Force composed of members from all departments of the Council which had been mandated to provide an oversight on all the revenue programmes of the Council and added value in terms of revenue initiatives.

Permits: The Council had under collected on permits owing to the following reasons: i. ii.

transport.

The Council had challenges of transport for revenue collection programmes.
This made it difficult to meet all the planned revenue programmes; inaccessible areas of the district due to very bad road.

The poor road network was a major challenge for revenue collection programmes.

iii.

the COVID-19 Pandemic had an effect on some business houses as they had either closed down or had relatively no business.

This also made it difficult to maximise on the planned revenue.

The Council had a revenue vehicle and three motor bikes dedicated for revenue programmes.
Commercial Venture The under collection of revenue under commercial venture was mainly owing to the breakdown of the Commercial bus, which was mainly attributed to the bad road.

This had a big blow on the failure to realise the revenue under this budget line.

The impact of COVID-19 had also slowed the business activities from the Council Guest Houses which were located at the Central Business District (Munyumbwe) and at Chipepo Harbor.
The Council had since managed to repair the bus which became operational in the first quarter of the 2022.

The Council through mechanical section, under the works department, had drawn up a deliberate policy of making weekly mechanical reviews on the Commercial Bus so that potential mechanical problems were identified on time and worked on.

The Council had also expanded the commercial business by opening up five more Chalets at the Chipepo harbor, to enhance revenue under commercial budget lines.
Other Receipts: The Council had made a provision of K23,000 for other receipts and only collected K12,210.

The main cause of the variance was mainly because of the low production of cotton in the year under review.

The Council had made realistic budget adjustments in the subsequent budgets taking 2021 as the base year.
103 Local Government Equalisation Fund (LGEF) This was mainly due to the deductions at source that were made through the Ministry of Local Government and Rural Development which were LASF and Union Fees.

These normally created a disparity between the budgeted and the actual amounts received.

The Council continued to receive advice from the mother Ministry of the deduction made from source thereof.
The Council sought for indulgence through the Ministry of Local Government and Rural Development to increase on the equalisation Fund allocation at least by the annual variance which would help the Council to also meet the other obligations.

Other Grants Other grants specifically involved grants in lieu of rates.

The Council normally received grants in lieu of rates twice in a year amounting to K200,000 in total.
However during the year under review, the Council received amounts totaling K100,000, causing the variance.

The Council sought for indulgence of the Ministry of Local Government and Rural Development to actualise the funding of Grants in lieu of rates twice in the year as it where so that the Council could meet the needs of the budget under Grants in Lieu of Rates.

The Council would seek to actualise the budget according to the Funds received under grants in lieu of rates.
Committee’s Observations and Recommendations The Committee expresses concern that the Accounting Authority was taking action after the audit process.

In this regard, the Committee urges the Accounting Authority to be proactive and ensure that the measures stipulated are realised without fail.

The Committee also urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.
b.

Operational Matters -Environmental Management   The Council operated Chiluzi dumpsite without approval from Zambia Environmental Management Agency (ZEMA).

There were no guidelines and signage regarding entry into the dump site by users and members of the public.

See picture below.

104 No signs at the dumpsite Management Response It was submitted that Chiluzi Dumpsite was being operated without the approval from ZEMA as it was a temporal site and the Council was looking for the permanent site.
As for the Fencing of the dumpsite, the Council could not fence it owing to limited resources.

However, the matter was presented to the Council under Minute Number PWDREC/79/07/22 for formalisation of the dumpsite and letter written to the chief requesting for the land.

The sign post for the dumpsite was done and a picture below depicts the current status.

Going forward the Council would engage the relevant Authorities (ZEMA) - to seek approval before designating areas as a dumpsite.
The Council would also be engaging traditional leadership in the district requesting for land for future dumpsites.

The Council would also commit to improve on its revenue and make budgetary provision to have the dump site fenced.

Committee’s Observations and Recommendations The Committee notes with concern that the Accounting Authority was taking action after the audit process.
In this regard, the Committee urges the Accounting Authority to be proactive and urges that supporting documents on this matter be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

c. Accounting for Revenue - Failure to Collect Mast Levy It was submitted that the Council had been making consistent follow up with the Company (African Mobile Networks) over the need to pay Mast Levy for the year 2021.
However the response the Council was getting was that the Company had been facing financial difficulties that would not allow for the lamp sum payment but to pay in installments, funds allowing.

This caused a delay in receiving the funds in Full.

The Company finally managed to pay the whole balance of K50,000 arrears on 31st December, 2022.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

105 d. Management of Payroll and Other Staff Related Matters -Failure to Fill Vacant Positions The failure to fill the vacant positions was due to the fact that the mandate to employ and deploy was vested in the local Government Service Commission.
The Local Government Service Commission was communicated to, the position of Water and Sanitation Coordinator was included on the vacant report for the year 2022 and the position was advertised by the Local Government Service Commission and was later filled in on 14th November, 2022.

The position of Building Inspector was included on the vacant report for the year 2022 and the position was advertised by the Local Government Service Commission.
The Council was still waiting for the Commission to send an officer to fill in this position.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter.

The Committee will await a progress report.

e. i.

Procurement of Goods and Services Failure to Avail Payment Vouchers It was submitted that at the time of the audit, the said payment vouchers were separately kept in a folder in preparation of the audit.
When the audit started, the folder was erroneously not availed to the auditors for audit.

All the seventeen payment vouchers had been traced and were ready for verification.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

Failure to Utilise Gramosi Accounting Package ii.

It was submitted that the Package that was used on the Computer was not compatible.
The Computer had since been updated and the package was been used by the Council.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

Management of Stores - Unaccounted for General Stores It was submitted that this was caused by the non-availability of stores officer who at the time was at school attending to his residential school.
Coincidentally, the verification been done on a weekend (Saturday), the person that was delegated to briefly manage stores had travelled to attend to the bereavement that had befallen him.

This made it difficult to provide all the necessary documents needed for the verification which otherwise were available and to attend to the possible clarifications needed thereof.

The documents under general stores cited were all available and ready for verification.
106 Management would ensure that the controls were adhered to as regards to proper communication and handovers that would ensure that there was no disruption to the system and information flow in an event that one officer was not available.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

Lack of Title Deeds f. Management of Assets i.


It was submitted that the cause was mainly owing to the longevity the process it took to acquire the title deeds which was already started as at the time of audit.

The Council had submitted to ministry of Lands and Natural Resources recommendations of offer/Numbering of Council properties in the effort to obtain title for all council properties.

The Council had so far received some of the invitation to treat for some selected properties.
The layouts for other properties which needed numbering had been submitted to Ministry of Lands and Natural Resources.

Management through associations like SOLACE and LGAZ would ensure it made submissions recommending to the Ministry of Lands and Natural Resources to expedite the process of titling properties.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expeditiously engage the Ministry of Local Government and Rural Development on the matter, without delay.
the Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

Failure to Claim Insurance Premiums ii.

It was submitted that the failure to claim insurance on the vehicle that was involved in the car was because the insurance company demanded an insurance premium of at least K75,000 against the owed insurance cover of K95,477.
The payment was made of, K80,000, on 4th August, 2022 to ZSIC which payment was verified by the Office of Auditor General.

The insurance company however terminated the insurance agreement owing to the historical debt owed to the company which was amounting to K96,025.31.

The amount of K80,000 was paid to the Insurance Company and the Vehicle had since been worked on.

107 Pic 1 Pic 2 The council would endeavour to place priority on insurance cover payments so that it was current.
This would enable the insurance claims to be processed without any hold up as a result of unpaid premium.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

Failure to Reimburse Borrowed Funds g. Management of Local Government Equalisation Funds i.
It was submitted that the failure to reimburse borrowed funds was due to lack of funds when the Councillors orientation workshop was called up in Livingstone, following the General Elections that saw mostly new civic leaders .This being an inescapable national call , the Council had to borrow some funds to enable the Councillors attend the workshop.

The Council beginning 2023 had provided to reimburse all the borrowed funds to capital account.
It had come up with a payment plan with a commitment of a minimum payment of K20,000 per month.

The first payment was made on 12th January, 2023, amounting to K20,000 while the second payment made on 7th March, 2023, living a ledger balance of K91,720.

The Council would continue to liquidate the debt accordingly as per plan.

108 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the borrowed funds are paid back without fail.
The Committee will await a progress report on the matter.

ii.

Construction of a Bar (Phase 1) at Chipepo Guest House It was submitted that the project stalled as at that time inspections were being conducted by the Auditor General Office, because the key equipment (Tipper truck and Front End Loader) which were meant for ferrying of building materials had broken down, as the project was labour based.
The equipment was worked on, materials procured, ferried to site and the superstructure blocks were almost done in preparation for roof structure.

The Council would endeavor to ensure that the materials were advanced in time to site for the labour based contract.

The Council would also make sure that the equipment was serviced according to the formulated vehicle maintenance policy so that there were no disruptions in respect of transportation of materials when needed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the project is completed without any further delay.

The Committee will await a progress report on the matter.

Failure to Remit Statutory and Other Obligations h. Management of Liabilities i.

It was submitted that the failure to pay statutory contributions was attributed to wage bill deficit which was at an average of - K108,042.41.
Management was engaging statutory bodies on going into payment plan that would eventually see the liquidation of the debt which was mostly historical.

The Council had committed to be allocating at least funds amounting to K15,000 monthly in its 2023 budget, dedicated towards liquidating the staff debt.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the outstanding statutory obligations are cleared without delay.
The Committee will await a progress report on the matter.

i.

Failure to Settle Staff Obligations It was submitted that the failure to settle staff obligations was as a result of low revenue base at the time.

The Council had committed to be allocating atleast funds amounting to K36,000 monthly in its 2023 budget, dedicated towards liquidating the staff debt.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the staff obligations are paid so that the relevant workers Conditions of Services are not violated and appropriate regulations upheld.
109 Ikelenge Town Council Paragraph 22 22.1 Audit Findings An examination of financial and other records maintained at the Council for the financial Year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: Budget and Income j.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K12,865,582 against which amounts totaling K12,426,658 were received and generated resulting in under collection with a adverse variance of K438,924 as shown in the table 1 below: Table 1 : Budget and Actual Income Management Response Local Taxes – K2,783 The under collection of K2,783 was due to the effects of COVID-19 Pandemic which negatively affected the economic activities in the District leading to closure of most of the shops and further resulting in reduction in number of people remitting personal levy.
It was submitted that business improved post COVID-19 and data capture was taken to ensure the right projection was made and local taxes (Personal levy) improved in 2022 to K9,702.50.

The business community was sensitised on how to operate during and after the COVID-19 resulting in the observed increase in compliance levels.
110 20212021 Budget Actual VarianceLocally Generated1Local taxes11,250 8,468 (2,783) 2Fees and Charges1,757,150 230,775 (1,526,375) 3Licences14,090 19,864 5,774 4Levies541,300 234,047 (307,253) 5Permits103,250 1,950(101,300) 6Other Receipts14,200 - (14,200) Sub Total2,441,240.00 495,103.50 (1,946,137) National Support7Government Equalisation Fund8,624,342 7,951,249 (673,093) 8Constituency Development Fund1,600,000 1,600,000 - 9Other Grants200,000 2,380,306 2,180,306 Sub total10,424,342 11,931,555 1,507,213 12,865,582 12,426,658 (438,924) Revenue TypeSN Fees and Charges – K1,526,375 The under collection was mainly due to the halting of land alienation in Councils issued through a Ministerial circular (MLG/101/4/1) dated 16th April 2021.
The Council had planned to alienate about 1,400 plots of different categories namely; Residential, Commercial and Special use at Jimbe border during the period.

The Council Management had an audience with the Minister of Lands regarding the land alienation at Jimbe boarder and the resolutions were that the alienation process be halted until due diligence on the surveyed land could be concluded.
The Council wishes to report that going forward Council would only budget after all the due diligence had been conducted to ensure smooth alienation of land in the District.

Licences –K5,774 The positive variance was as a result of the active Task Force that was put in place by the Council to follow on business in the District to make prompt payments as they fell due.
The Council would continue engaging and sensitising the business houses in the District in order for them to continue paying the required licences for improved service provision.

Levies – K307,253 The largest component under this allocation was expected from pineapple and honey levies.
However, during the period under review there was an under collection due to the effects of COVID-19 reducing the numbers of customers coming to buy pineapples and honey which negatively affected the economic activities in the District coupled with the bad state of the roads linking the District to the market areas for the stated commodities.
The Council had embarked on feeder roads grading and gravelling to ensure there was access to the farm lands for easy transportation of pineapples and honey to market destinations.

Further some road works had been done on the T5 road to easy access into and out of the District.

It was submitted that funds had been lobbied through the CDF committee to procure a Backhoe loader (TLB) to facilitate for routine maintenance of feeder roads in the District.
Further the Council had embarked on investing in commercial ventures that would improve on revenue mobilisation in the long run.

Among other commercial investments the Council had resolved to invest in Block making venture to supply Blocks for CDF projects and other construction works in the District.

Further it was submitted that the Council was constructing Butchery and had come up with some concept papers to support farming activities at the newly acquired 250 Hectares Council farm.
Permits – K101,300 The sensitisation activities through Public Address system and community meetings had been carried out to ensure that all trade in the District was permitted by the Council and this would further result in increased revenue.

111 Sensitization in Ikelenge (CBD) Sensitization in Jimbe The Revenue Task had been put in place to ensure that all trade in the District was permitted and there was total compliance.
Other Receipts – K14,200 The allocation was meant to cover contributions from various stakeholders for support towards Global Hand washing day.

However, during the period under review the contributions for this activity did not come through to the Council.

The future Budget projections will be based on commitments made in writing as compared to making provisions without any written commitments.
National Support-Local Government Equalisation Fund – K673,093 The under receipt was due to the deductions that were done at source to cater for audit fees, LASF, Union fees, among others.

The Ministry had been engaged to provide information for deductions that were done at source.
Further the Council was seeking the consideration of the Ministry to increase the Local Government Equalisation Fund as it was not adequate for service provision after deduction of the 20 per cent capital component, councillors allowances and operational cost of the Council.

The Council had engaged the Ministry to ensure that a schedule of expected deductions at source was sent to the Council in time before the grant was receipted.
Committee’s Observations and Recommendations The Committee bemoans the under performance of the budget on the locally generated revenue streams and urges the Accounting Authority to ensure that the Council does not over stated its budget and conduct budget reviews to avoid under collection.

The Committee also urges that the land allocation matter at Jimbe be expeditiously concluded without delay.

The Committee will await a progress Report on the matter.
k. Operational Matters- Solid Waste Management Services i) It was submitted that the workers under Solid waste section had since been subjected to periodic Failure to provide medical examination for employees 112 medical examinations.

The Council had committed to ensuring that initial, periodical and beneficial medical examinations were done in line with the Occupational Health and safety Act, No.

36 of 2010.
36 of 2010.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to collect revenue from Lease of Council properties.
l. Weaknesses in IT Systems and Other Internal Controls i) The Council had engaged the power supply company Zengaminato to do metre separation for each shop so that tenants paid for electricity directly to the service provider as opposed to the obtaining situation were rentals had incorporated in them the component of electricity charges.

This would reduce on partial payments of rentals and any default on rentals would automatically lead to evictions.
It was further submitted that in the year, 2022, a total of K21,905 was collected.

The Council had reviewed the tenancy agreement and had committed to strictly adhere to the conditions contained in the Tenancy agreement in respect of would be defaulters.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that all the revenues owed to the Council are collected without fail.
The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter m. Managing Assets- Lack of Title Deeds It was submitted that Ikelenge Town Council was not yet a planning authority, thus Ministry of Lands had been engaged to help with the survey of the properties in question in readiness for numbering and further processing of title deeds.
The Council had also engaged Ministry of Lands for it to benefit from the land titling programme (Systematic Land Titling) that would ensure that all plots in the district were surveyed and numbered by Ministry of Lands and title deeds issued.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to follow up the matter of land titling, with the Ministry of Lands and Natural Resources without delay.

The Committee will await a progress report on the matter.
n. Management of Local Government Equalisation Fund – Failure to Reimburse Borrowed Funds It was submitted that funds were borrowed to meet inescapable financial obligations with a view to paying back once the financial situation improved from offloading of plots at Jimbe border.

Further Management came up with a reimbursement plan and had since reimbursed funds totaling K151,450.
113 It was submitted that Ikelenge Town Council had committed to spending the 20 percent capital funds on commercial investments that would broaden the Revenue base and in turn improve the cash flow and service provision in the district.

The Council had since budgeted to operationalise the 250 Hectares Council farm, invest in block making business and had constructed a Butchery/Restaurant to help in revenue generation.
Committee’s Observations and Recommendations The Committee commends the Council for the innovations to enhance the revenue sources but urges the Accounting Authority to ensure that the borrowed funds are paid back and desist from the practice of borrowing from the capital component of the equalisation fund.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter Failure to Install Street Lights o.

It was submitted that the township roads that could accommodate street lights were yet to be done, however the Council had installed flood lights at strategic buildings and places such as markets that were lighting all the surrounding areas.
Further the Council had embarked on installation of solar powered flood lights to provide lighting to the most active public places such as the Civic Centre and the Bus station.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
p. Management of Constituency Development Fund (CDF)  Unspent Funds The amounts allocated to the projects in question were inadequate to start the projects in the absence of the mandatory community contributions in form of labour, sand, bricks, among other materials, as was provided in the previous CDF guidelines.

The Council secured additional funds from the 2022 increased CDF funds and a good number of the thirty-three labour based projects were nearing completion.
The Council and the CDF committee had resolved that all supply and construction works under CDF would be outsourced in order for the community to benefit from the expertise of the contractors by the quality of works that should meet national standards.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the cited projects are completed without any further delay.
The Committee will await a progress report on the matter  Failure to implement approved projects The amounts allocated to the projects in question were inadequate to start the projects in the absence of the mandatory community contributions in form of sand, bricks, labour, among other materials, as was provided in the previous CDF guidelines.

114 The Council secured additional funds from the 2022 increased CDF allocation for three projects which had since been funded and awarded to contractors.
Council and the CDF committee had resolved that allocation of funds would be based on established engineers’ estimates and all supply and construction works under CDF would be outsourced in order for the community to benefit from the expertise of the contractors by the quality of works that should meet national standards.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the cited projects are completed without any further delay.
The Committee will await a progress report on the matter.

 Completion of a 1x2 laboratory at Lwakela Secondary School – Stalled Project It was submitted that the Council secured additional funds from the 2022 increased CDF funds for this project and the amount had since been approved by the Ministry of Local Government and Rural Development.

The contractor took site possession on 10th February, 2023 and had since mobilised.
The Council Management and the CDF committee had resolved that allocation of funds would henceforth be based on established engineers’ estimates and all construction works under CDF would be outsourced in order for the community to benefit from the expertise of the contractors by the quality of works that should meet national standards.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the cited project is completed without any further delay.

The Committee will await a progress report on the matter.

 Failure to Claim Refund The Council took the matter to court and the court entered into default judgement in favour of Ikelenge Town Council for failure of appearance by Luwaile Investment.

The Council was waiting for the court to enforce judgment.
The Council had committed to engaging reputable contractors of known fixed abode preferably from within the constituency as provided in the CDF guidelines.

115 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
 Delayed Completion of Projects The Accounting Authority submitted that the Council secured additional funds from the 2022 increased CDF for these projects and the funds had since been approved by the Ministry of Local Government and Rural Development.

Further the contractors were on site and a good number of these projects were nearing completion.
Refer to table below; 116 No Project Contractor 1 Completion of a 1 x 2 CRB at Samahina Primary School Chiteta Fungamwangu Contract Period 6 month Initial Amount Allocated K 84,786 Current Allocation Status as at 23rd February, 2023 K236,786 The project was at finishes level and the contractor was internally.
All finalizing outstanding materials had been procured and planned to be completed the by 31st April, 2023. the plastering of walls KabwitaDelphine 6 month K100,000 K516,500 The contractor was building to wall pate level and all outstanding materials had been procured and being delivered to site.

Works are expected to be completed by 31st May 2023.
2 Construction of a 2 x 1 Laboratory Block at Kamata Day Secondary School 117 Percy Machipisha 6 month K119,600 3 Construction of a Rural Health Post at Kelondu Community K252,600 The project was at finishes level and the contractor is internally.
All finalizing outstanding materials have been procured and envisioned to complete the by 31st April, 2023. the plastering of walls 4 Construction of a 1x3 CRB at Saluzhinga John Luwi 6 month K107,000 K458,000 The contractor finished works in the substructure to slab level and has started working on the super structure walls.

All outstanding materials have been procured and 118 Primary School delivered to site.

Project is expected to be completed by 31st June 2023.
5 Construction of a Laboratory at Mwininyilamba Day Secondary School TennesKadilan’a 6 month K35,214 K516,214 The project was at roof covering level.

All outstanding materials have been procured and had been delivered to site.

Project is expected to be completed by 31st June 2023.

119 KayomboKazhiko 6 month K20,000 6 Construction of a staff house at Kanyikolu Community School K256,000 The project was at ring beam level and the contractor is preparing for the casting of the concrete ring beam.
All outstanding materials have been procured and had been delivered to site.

Project is expected to be completed by 31st June 2023.

120 KayomboKajiko 6 month K20,000 7 Construction of a staff house at Yambezhi Primary School K256,000 The project was at wall plate level and the contractor is preparing to start the gabble wall.

All outstanding materials had been procured and had been delivered to site.

Project was expected to be completed by 31st June 2023.
8 Construction of a staff house at Mapudi Primary School KayomboKAzhiko 6 month K30,500 K156,000 The project was at roof covering level and the contractor the finishes.

All outstanding is preparing to start materials have been procured and delivered to site.

Project was expected to be completed by 31st June 2023.
121 9 Construction of a 1 x 2 CRB at Kansefu Primary School Chinyama Jorred 6 month K 100,000 K240,000 The project was at roof covering level and the contractor is preparing to start the finishes.

All outstanding materials have been procured and delivered to site.

Project was expected to be completed by 31st June 2023.
122 Luwi John 6 month K50,000 10 Construction of a staff house at Kafunyi Primary School K256,000 The project was at ring beam level and the contractor is preparing to start the casting of concrete ring beam.

All outstanding materials have been procured and delivered to site.

Project was expected to be completed by 31st June 2023.
Kanyembu Gilbert 6 month K 100,000 11 Construction of a 1 x 3 CRB at Mukanga’la Secondary School K458,000 The project was at gabble level and the contractor is preparing to start timber roof structure and covering.

All outstanding materials have been procured and delivered to site.

Project was expected to be completed by 31st June 2023.
123 Collins Mufalewa 6 month K 178,551 12 Completion of a staff house at Muzeya Rural Health Post K245,551 The project was at finishes level and the contractor finalizing with plastering.

All outstanding materials have been procured and delivered to site.

Project was expected to be completed by 31st June 2023.

13 Construction of a 1 x 2 CRB at Kajinga Hastings 6 month K 20,000 K260,000 The contractor finished brickwork to ring beam level and has started preparation for casting the ring beam.
All 124 Mbuya Community School outstanding materials have been procured and delivered to site.

Project was expected to be completed by 31st June 2023.

14 Construction of a 3 x 1 Laboratory Block at Jimbe Secondary School KayomboKajiko 6 month K60,000 K737,000 The contractor was working on the superstructure walls.

All outstanding materials had been procured and delivered to site.

Project was expected to be completed by 31st June 2023.
125 Sawindele Smith 6 month K20,000 15 Construction of a staff house at Katooka Primary School K256,000 The contractor finished works in the substructure to slab level and has started working on the superstructure walls.

All outstanding materials have been procured and delivered to site.

Project was expected to be completed by 31st June 2023.
Sawindele Smith 6 month K 17,000 16 Construction of a 1 x 2 CRB at Muhaku Community K260,000 The contractor finished works in the substructure to slab level and has started working on the superstructure walls.

All outstanding materials have been procured and delivered to site.

Project was expected to be completed 126 School by 31st June 2023.
Isaac Kambeja 6 month K 8,900 17 Construction of a staff house at Kewumba Primary School K256,000 The project was at ring beam level and the contractor was just completed the casting of the concrete ring beam.

All outstanding materials had been procured and had been delivered to site.

Project was expected to be completed by 31st June, 2023.
KayomboKajiko 6 month K 30,000 18 Construction of a Rural Health Post at Chiyokolu K252,000 The contractor finished works in the substructure to slab level and has started working on the superstructure walls.

All outstanding materials have been procured and delivered to site.

Project was expected to be completed 127 Community by 31st June 2023.
128 The Council and the CDF committee had resolved that allocation of funds shall henceforth be based on established engineers’ estimates and all construction works under CDF would be outsourced in order for the community to benefit from the expertise of the contractors, by the quality of works that should meet national standards.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the cited projects are completed without any further delay.

The Committee will await a progress report on the matter.

129 Failure to Remit Statutory Obligations The Accounting Authority submitted that Ikelenge Town Council was up to date with the 2022 and 2023 contributions.
However, the Council had financial challenges in respect of making payments towards prior years’ arrears which had prompted the Council to go into monthly liquidation plans with the ZRA and NAPSA.

In respect of Statutory contributions for 2022, the Council had made payments totaling K992,326.51 broken down as follows; ZRA, K522,973.85; i. ii.

NAPSA, K428,285.46; and iii.

NHIMA,K41,067.20.

The Council had committed to remitting statutory obligations as and when they fall due as evidenced above.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the offsetting of outstanding arrears with regard to statutory and other obligations.

The Committee will await a progress report on the full liquidation of outstanding balance.
Itezhi Tezhi Town Council Paragraph 23 Audit Findings An examination of accounting and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K18,806,117 against which amounts totaling K14,177,353 were received and generated resulting in a negative variance of K4,628,764.

See table 1 below.
See table 1 below.

130 Table 2: Budget and Income Management Response Local Taxes It was submitted that the under collection was due to the non-compliance by property owners and grant of lieu of rates that was not disbursed to the Council by the Ministry.

The Council had issued demand notices to the non-compliant property owners and procured a PA system for dissemination of information.
The Council would ensure continuous sensitisation to property owners on the need to pay, for them to receive the needed services and bills would continue to be distributed in good time by the Revenue Taskforce.
Fees and Charges It was submitted that the Council had not collected the sum of K3,318,938 out of the budgeted amount of K4,379,760 during the financial year under review and this was due to poor response from the public in payment for residential and commercial plots, late delivery of Survey diagrams, non-payment of other fees and charges associated with plot allocation such as consideration fees Survey fees, application fees, building inspection fees, scrutiny fees, lease of council transport, bus station fees, meat inspection fees and illegal parking of vehicles charge.
The Council had engaged Ministry of Lands through Surveyor General by submitting Survey diagrams for approval, of which, 500 had already been delivered and 500 were yet to be signed.

The Council would ensure that all fees and charges associated with land alienation provided for in the budget were collected through the enforcement by the revenue task force and publicising the availability of survey diagrams.
Licenses It was submitted that the over collection was due to the revenue task force which was put in place, introduction of cashless and revised invoicing system.
131 No.Source of Funds Budget K Income K Variance KLocally Generated1Local Taxes2,615,075 1,964,130 (650,945) 2Fees & charges4,379,760 1,060,822 (3,318,938) 3Licences160,354 216,354 56,000 4Levies212,890 245,769 32,879 5Permits108,395 99,128 (9,267) 6Commercial Venture- - - 7Othef income869,842 377,545 (492,297) Total8,346,316 3,963,748 (4,382,568) National Support8Local Government Equalization Fund8,859,801 8,613,605 (246,196) 9Constituency Development Fund1,600,000 1,600,000 - 10Other Grants- - - Sub Total10,459,801 10,213,605 (246,196) Total18,806,117 14,177,353 (4,628,764) Levies The Council submitted that the over collection was due to the construction of boom gates in all strategic exit points in the district.
The Council would work with Ward Development Committees (WDCs) in all the wards were these boom gates had been constructed and also coordinate the operation of the revenue task force.

Permits It was submitted that the under collection was due to lack of wider information and engagement of the stakeholders.

The Council procured a PA system to sensitise and engage the stakeholders and Revenue Taskforce put in place for coordination of revenue collection.
Other Income The Council submitted that the under collection was due to the breakdown of the Drilling Rig hence no boreholes were serviced.

The Council procured spare parts for the Rig machine which was since working.
The Council would continue providing service to the Community through sensitisation and engagement of stakeholders on the need for commitment by making contributions for the boreholes National Support It was submitted that the variance was due to the deductions made at source for audit fees, union contributions and LASF contributions.
These were funds which were appropriated to the Council from the Treasury through the Ministry of Local Government and Rural Development and had been adequately disclosed as notes in the financial statements as direct payments.

The Local Authority would endeavor to undertake budget tracking in order to make timely remedial measure of flexing the budget accordingly.
Management Response The Committee commends the Council for the over collection under levies and licenses but urges the Accounting Authority to come up with realistic budget projections to enhance the budget credibility.

The Committee also urges that the Council must follow up with the Ministry of Lands and Natural Resources on the survey diagrams, without delay.

The Committee will await a progress report on the matter.

Lack of Fire Fighting and Prevention Services b.

Operational Matters i.


It was submitted that the Council did not establish and maintain fire fighting and prevention services due to liquid challenges to procure equipment.

132 The Council had written a follow-up letter to the Ministry of Local Government and Rural Development on the need to have a fire tender and fire fighting equipment.
The Council would endeavor to use the available sixteen fire extinguishers to protect life and property in the event of a fire and had provided for the sum of K19,200 in the 2023 budget for servicing the fire extinguishers while awaiting for the Ministry of Local Government and Rural Development to allocate a fire truck to Itezhi Tezhi Town Council.
Committee’s Observations and Recommendations The Committee expresses concern at the lack of firefighting equipment at the Council and urges the Accounting Authority to ensure that part of its capital fund is investment in firefighting equipment, without delay.

The Committee will await a progress report on the matter.
ii Failure to Prepare an Integrated Development Plan The Council submitted that the Council did not have an Integrated Development Plan in place due to the fact that the activity was expensive for the Council alone to come up with IDP without support from partners as required by Section 19(3) of the Urban and Regional Planning Act, No.

3 of 2015.
3 of 2015.

The District stakeholders had started formulating an Integrated Development Plan and had already done data analysis during the period 21st to 24th December, 2022 through funding that was provided by World Wide Fund for nature (WWF).

The team was working on the issues report and would soon be moving to the development framework and implementation plan in order to conclude the formulation process.
The Local Authority would ensure that the formulation of Integrated Development Plan was completed in the third quarter of 2023 and K100,000 for the remaining stages had been provided for in the 2023 budget.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to ensure that the IDP is developed and operationalised without delay.

The Committee will await a progress report on the matter.
iii Failure to carry out Dog Registration It was submitted that the failure to carry out dog registration despite being a Registration Authority, was due to lack of sensitisation and engagement of the stakeholders on the importance of having their dogs registered.

The Council had since commenced sensitisation process on the need to have the dogs registered.

The Council had since included Dog levy in the 2023 budget.
The Council would endeavor to continue dog registration in collaboration with the Department of Fisheries and Livestock, under veterinary services, as they carried out dog vaccination.

Committee’s Observations and Recommendations The Committee bemoans the failure by the Council to conduct registration of Dogs when it would serve as source of revenue for the Council and further prevent the outbreak of diseases that are associated with unvaccinated dogs.
The Committee, therefore, urges the Accounting 133 Authority to ensure that measures are put in place to actualise this, without delay.

The Committee will await a progress report on the matter.

iv Failure to Control and Manage Markets It was submitted that the Council did not control or manage seven markets under its jurisdiction as outlined under Section 5(1) of the Markets Act, No.

7 of 2007, which stated that “All markets and bus stations shall be under the control of a local authority”.
The Council was controlling and managing three established markets and not seven as cited in the report as outlined under section 5(1) of Markets Act, No.7 of 2007.

The Council would ensure that the three markets in the district were always in good state by undertaking prompt repairs and maintenance whenever there was need in order to have a conducive trading environment.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the Council does not neglect its functions as provided by the Markets Act, No.7 of 2007, regarding the management of Markets.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

c. Accounting for Revenue i.


Missing Receipt Books it was submitted that the nine receipt books used were not availed for audit thereby exposing the Council to loss of revenue and this was due to having some revenue agents not handing in the used books on time.
The Council had managed to trace five receipt books out of the nine, leaving a balance of four and the Council had written to Assistant Internal Auditor who was the custodian and issuing officer at the time, to account for the remaining four receipt books and the matter had been reported to the police.

The Council Treasurer had taken up custody of all accountable documents and ensured that the receipt books issued were all returned by end users and kept under lock and key.
Committee’s Observations and Recommendations The Committee observes with concern that the failure receipt books was due to poor internal controls at the Council and therefore, urges the Accounting Authority to enhance the internal controls at the Council.

The Committee will await a progress report on the outcome of the police investigations.

ii.

Failure to collect revenue from lease of council properties The Council submitted that the failure to collect revenue was due to non-compliance by the tenants.
The Council, through its Revenue Task Force distributed demand notices to all traders occupying shops in the modern market and the tenants had since started settling the bills while others had surrendered the shops.

The Council would ensure continuous engagement with shop 134 tenants on the need to pay rentals and that payment of rental arrears, even if the shops were surrendered would be pursued.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the amount owing is collected without fail.

The Committee will await a progress report on the matter.

d. i.
d. i.

Management of Payroll and Other Staff Related Matters Failure to Fill Vacant Positions It was submitted that the failure to fill vacant positions was due to the fact that, the auditors used harmonised structure when full decentralisation took effect and not the Council approved establishment register.

Further, Senior Health Inspector was performing the functions under Public Health.
The position of Assistant Commercial Manager, had not been filled to date because the Local Authority had no commercial ventures to warrant the position to be filled as the only commercial venture was in a deplorable state awaiting re-construction.

The position of Community Development Officer was filled at the time of the audit.

The Local Authority through Human Resource Management Committee would fill in the position of Assistant Commercial Manager when the Lodge was re-constructed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Over Employment of Staff The Accounting Authority submitted that the overstaffing was as a result of the Local Government Service Commission recruiting and posting staff to the Council, based on the harmonised structure instead of Council approved register.
The Council did not have the thirty excess officers as evidenced from the staff returns.

The positions of Valuation Officer, Senior Accountancy Assistant, Administrative Officers and Data Entry Officers had two officers filling the same positions.

There were also nine Clerical Officers which positions were not in the establishment.

The Council had since written to the Commission for re-deployment of excess staff.
The matter would be remedied by the Human Resource Management Committee that had been established in the Local Authority and further submitted recommendation to local Government Service Commission for their decision.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

135 Failure to confirm staff ii.


The Accounting Authority submitted that the delay in confirmation of the staff was by Local Government service Commission who were the employers of division 1-III and the Council’s role was to recommend for confirmation.

Two of the officers had been confirmed by the Local Government Service Commission while the third could not be recommended for confirmation due to lack of the minimum qualifications.
The said officer had since been written to, so that he could upgrade his qualification.

The Council through the Human Resource Management Committee would endeavor to recommend for confirmation of staff immediately they fell due.

Where there was need for officers to upgrade their qualifications, management would encourage officers to do so.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

e. i.

Management of Assets Failure to Secure Title Deeds The Accounting Authority submitted that the Council did not have survey diagrams and numbered plots in place at the time of the audit.
The Local Authority had taken a step of submitting all the plans for all said properties for numbering to the Regional Lands Office.

The Civic Centre and eight Council houses had been surveyed awaiting survey diagrams while Masemu guest house and Modern Market were on offer.

The Local Authority would ensure henceforth that all processes were followed to the latter and title deeds secured for all Council properties.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Maintain Council Properties  Masemu Guest House  Masemu Night club It was submitted that the Council had no Council resolution to demolition, re-construct and drawings for the new structures, as the earlier resolution was for the rehabilitation of the two structures.
The Local Authority had allocated funds for re-construction of the Masemu lodge and bar instead of rehabilitating the two structures as initially planned because the structures had been heavily infested with termites and were in a deplorable state making rehabilitation not possible.

The matter was reported to the full Council, which had given a go ahead for the demolishing of the 136 entire structure and re-construction of a new lodge and bar.
Designs for the construction of a new lodge had been done and an advertisement was also done in the print media on 15th November, 2022 for the construction.

The local Authority would ensure that in all its annual budgets there would be funds set aside for maintenance of its assets.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Management of Local Government Equalisation Funds - Misapplication of Funds f. It was submitted that the reimbursement of the borrowed funds was delayed due to the non- payment by ZESCO for property Rates.

The Local Authority had reimbursed the borrowed funds amounting to of K614,684.
The Local Authority would endeavor to raise enough funds for operations through enhanced revenue collection as opposed to borrowing funds from the Local Government Equalisation Funds for its operations.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Management of Constituency development Funds g. Failure to implement approved project The Accounting Authority submitted that the Council delayed to drill the boreholes due to the fact that when the whole procurement process was completed, the contractor selected could not take up the contract, because the market price of drilling of boreholes had escalated.
This led to the Local Authority to wait for the new Constituency Development Fund Committee to decide on the matter and the Committee resolved to reduce the number of boreholes to eight in order for the allocated sum of K560,000 to suffice.

The boreholes had since been drilled.

The Local Authority would endeavor to implement projects within the approved period by allocating adequate funds to projects to avoid delays in spending funds which resulted in service delivery to communities being delayed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

h. i.
h. i.

Management of Liabilities Failure to Remit Statutory Obligations The Accounting Authority submitted that the Council had unpaid statutory contributions owed to the Zambia Revenue Authority, NAPSA in various amounts and this was attributed to inadequate Local Government Equalisation Fund and Locally Generated Revenue to pay salaries at a gross 137 figure of K1,075,000, against LGEF of K828,318.
Table 2: Unremitted Statutory Obligations NAPSA The Local Authority was paying the arrears as contained in a consent order where the principal amount of K 1,734,051.81 had to be paid in two years at K72,252 per month effective September, 2022 to August, 2024 while paying for the current statutory obligations.
ZRA The Ministry of Finance and National Planning paid the sum of K2,400,000 to the Zambia Revenue Authority on behalf of Itezhi Tezhi Town Council which had reduced the indebtedness to K1,709,039 The Local Authority had provided for part-payment plan in the 2023 budget to liquidate ZRA debt.

The Local Authority was appealing to the Ministry to increase funding on the Local Government Equalisation Grant considering the lean revenue base for Itezhi-Tezhi Town Council.
The Local Authority was making efforts through its Revenue Task force to collect revenue due to the Local Authority as budgeted.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the outstanding statutory obligations are paid out without delay.

The Committee will await a progress report on the matter.

Failure to Settle Staff Obligations i.


The Accounting Authority submitted that the failure to settle staff obligations was due to liquidity challenges and the inadequate funding.

The Local Authority had been paying retirement benefits, leave travel benefits, long service bonus, settling-in allowances.

The Local Authority would endeavor to honor its payment plan for 2023 which included settling staff obligation.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that staff obligations are settled without delay.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
138 No.InstitutionBalance b/fas at 01.01.2021 KObligations for 2021KCummulative Total KPayments KBalance as at 31.12.2021 K1ZRA3,811,839 360,989 4,172,828 2,463,789 1,709,039 2NAPSA2,167,285 773,514 2,940,799 - 2,940,799 Total5,979,124 1,134,503 7,113,627 2,463,789 4,649,838 Kabwe Municipal Council Paragraph 24 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council received grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K78,717,911 against which amounts totaling of K45,739,255 were received and generated resulting in a negative variance of K32,978,656.

See table 1 below.

Table 1: Budget and Income In addition, amounts totaling K8,456,908 were brought forward from 2020 bringing the total funds available to K54,196,163.
As at 31st December 2021, amounts totaling K45,449,210 had been spent leaving a balance of K8,746,953.

Management Response Local Taxes The Accounting Authority submitted that the underperformance was caused by failure of the Government to remit personal levy for the civil servants, and downsizing or complete closure of businesses due to the COVID-19 pandemic.
Fees and Charges It was submitted that the underperformance occurred due to the failure by the Council to sale plots for a new planned residential area.

Licences, Levies, Permits, and Other Incomes The negative variance was caused by closure of liquor and other associated businesses, due to the COVID-19 pandemic during the period under review.
The Council requested the Provincial Local Government Officer to assist in engaging the Ministry of Finance and National Planning 139 and other Government departments to remit the outstanding personal levies for civil servants.

As regards property rates, Council had since issued demand notices and warranty of distress and further engaged court bailiffs to clients who had defaulted.

This move resulted in the Council raising approximately a sum of K400,755.34 from the exercise.
As regards fees and charges, the Council managed to sale 150 out of 511 on first come first serve basis raising approximately K3,750,000.

For the remaining plots, interviews and selections were conducted and awaiting letters of offer to be given out and to collect more revenue.
With regard to licenses, levies, permits, and other incomes, the council had put in place a revenue task force team to ensure all the revenues due to the council were collected following the reversion to easing of COVID-19 restrictions and reversion to normal operating hours.

The Council had put in place a mechanism to ensure that the revenue database was updated regularly and customers who defaulted on property rates were issued with demand notices promptly.
Furthermore, Council had continued engaging and sensitising the community in order to maximise and enhance revenue collection on Fees and Charges, Property Rates and other fees.

Committee’s Observations and Recommendations The Committee notes with concern that all revenue streams under locally generated revenue under performed.

In this regard, the Committee urges the Accounting Authority to ensure that measures are put in place to address the under collection without delay.
The Committee will await a progress report on the matter.

Operational Matters - Lack of an Integrated Development Plan b.

The Accounting Authority submitted that the failure to prepare an Integrated Development Plan (IDP) was due to tight liquidity conditions.

The IDP had been prepared and just awaiting approval processes The Council would undertake regular reviews to ensure latest trends and socioeconomic dynamics were taken into account in the development priorities of the district.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Accounting for Revenue Failure to Collect Revenue from Lease of Council Properties c. i.
It was submitted that the weakness in the collection of revenue from rented properties for the Council as of 2021 was due to the fact that at the time of budgeting, management used data with duplicated properties in the system which caused double billing.

Further, the system continued billing vacant properties that some clients had vacated due to the effects of COVID-19.

140 The Council had taken steps to make improvements on the tenancy agreement regarding markets and other properties.
Secondly, an updated and cleaned up billing system had been done including removal of deceased tenants from the billing system.

Thirdly, eviction and demand notices had been issued to tenants that were owing in order to collect what was due to the Council.

According to statistics, seventy-one properties were vacant but the system had erroneously billed, which had been rectified.

Eleven properties were erroneously double billed while seven tenants that died had had their accounts closed.
Three properties were in the courts of law while the remaining 198 properties have received demand and eviction notices.

The Committee was informed that K557,798.99 was collected in 2021 and a K731,542.76 was collected in 2022 showing an upward trend.

Some of the clients occupying these properties had since been taken to the courts of Law and the commencing of Fast track courts at Kabwe Municipal council would be an advantage to dispose of these matters.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to Operate Motel ii.

It was submitted that Mulungushi Motel was non functional and in a dilapidated state.
Therefore, there were no business activities being conducted.

The Council had not overlooked the Motel.

However, it was trying to mobilise resources so that the Motel could be renovated to a modern facility as it had more competitors in the area.

Furthermore, plans were underway to find a private developer through Public Private Partnership.

The Council with the support of Ministry of Finance and National Planning came up with Concept Note for the project.
In order to ensure that the area was not completely abandoned, the Council did complete the construction of a truck park and operationalised it.

Therefore, some of the revenues that would be realised would be channeled towards the renovation of the Motel.

Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council was not operating a Motel that would serve as a revenue earner for the Council and wonders how it would widen its revenue base.
In this regard, the Committee urges the Council to be proactive and ensure that the motel is operationalised without delay.

The Committee will await a progress report on the matter.

Over Employment of Staff Management of Payroll and Other Staff Related Matters i.

It was submitted that hiring of employees to the permanent and pensionable establishment of the local government service was a preserve of the Local Government Service Commission who employed and transferred officers.
Quarterly staff returns and vacancy reports had been submitted to the Commission for action and was awaiting a response so that the staff establishment could be normalised.

In terms of the 141 Service Commissions Act, No.

10 of 2016, the LGSC could alter the establishment register whenever they deemed it necessary.
It was submitted that the Council awaited an approved staff establishment from the Commission through the Ministry of Local Government and Rural Development which would show the number of officers to fill a particular position.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to follow up the matter with the Service Commission without delay.

The Committee will await a progress report on the Matter.

Failure to Confirm Staff ii.


It was submitted that the officers were found to be unconfirmed at the time of audit largely due to the lengthy procedures.

The Council recommended five officers who were due for confirmation and substantive promotion to the Local Government Service Commission for final decision.

However, only three had since been confirmed, and the Council still awaited the response for the remaining two officers.
The council always made timely follow ups to the Local Government Service Commission to ensure that staff related matters were dealt with promptly as they were highlighted through staff returns.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter, without delay.

The Committee will await a progress report on the Matter.

Failure to insure Motor Vehicles e. Management of Assets i.
It was submitted that the failure to insure the nineteen motor vehicles was caused by the delay to agree on the contractual terms with Professional Insurance company which further delayed the process to insure all the vehicles.

The Council concluded the contractual discussions and the nineteen vehicles had since been insured.

The Council through its vehicle maintenance policy had come up with a system to ensure that motor vehicles were insured timely.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.

Lack of Title Deeds ii.

The Accounting Authority submitted that the failure to secure title deeds for ninety-one Council properties was due to the non-availability of plot numbers and survey diagrams.
142 The Council lodged all the ninety-one applications and certificates of titles in respect of sixty- five properties had since been obtained while twenty-six were being awaited.

The Council had devised a mechanism of capturing properties of the Council and having them on title as and when plot numbers were picked and survey diagrams made.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that all Council properties are on title, without delay.

The Committee will await a progress report on the Matter.

Constituency Development Funds (CDF) f. Bwacha Constituency  Stalled Works - Construction of Changing Room and Toilets at Indeni Grounds It was submitted that the stalled works at Indeni grounds was caused by insufficient funds that were initially allocated to the project.
This project was initially allocated K215,000 by the CDF committee to complete the works.

This amount had a shortfall as the initial engineer’s estimate was K249,324.

This shortfall of K34,324 hindered the progress of the works as it was insufficient to complete the works.

The pending works included painting, plumbing works and connection to service lines.

The Council completed the works at Indeni grounds and just awaiting connection to the service lines.
The council through the CDF committee resolved to do away with labour-based projects and instead placed all projects on full contracts.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.
Stalled Works - Construction of a Modern Toilet at Kawama Market  It was submitted that the stalled works at Kawama modern ablution block was as a result of insufficient funds that were allocated to complete the project.

The mode of funding was to allocate funds in phases and that at every phase additional funds were required up to full completion.

The Council provided additional funds and the project had since progressed to 95 per cent with some walls remaining to be plastered and painted.
The contractor was still on site working on the finishes.

The project was scheduled to be commissioned in the first quarter of 2023.

The Council through the CDF committee resolved to do away with labour-based and instead placed all projects on full contracts.

143 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.

Drilling of Bore Holes-Stalled works  It was submitted that the two boreholes that were reported not to have been drilled were actually drilled and were just not visited due to impassable roads at the time of the audit.

The eight boreholes were just awaiting installation of hand pumps.
The Council installed the hand pumps.

However, the works were not done satisfactorily and defects were reported within a period of two weeks after installation.

The Council went ahead to terminated the contract to be later awarded to a more serious contractor to complete the works with the additional funds of K40,000.

The council would ensure that due diligence was undertaken during the tendering process to avoid contractors defaulting on projects.
Committee’s Observations and Recommendations The Committee expresses concern at the delay in equipping the boreholes, much to the disservice of would be beneficiaries.

The Committee, therefore, urges the Accounting Authority to ensure that the project is expeditiously completed and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.
i. Kabwe Central Constituency  Over expenditure on the project- Construction of Nakoli clinic mothers’ shelter It was submitted that the over expenditure on the construction of Nakoli mother’s shelter was due to price fluctuations on the building materials, which caused the project to cost more.

The Council allocated additional funds to cushion the over expenditure.

Furthermore the project under the 2022 CDF was awarded K560,000 to complete on a full contract basis.
The council would ensure that due diligence was undertaken during the tendering process to avoid contractors defaulting on projects.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.
144  Failure to implement approved and funded projects a. Drainage works in Katondo It was submitted that the failure to implement projects despite the availability of funds for drainage works in Katondo was as a result of unavailability of specialised construction materials during the COVID-19 pandemic and manpower as there were restrictions on field works.

The Council completed the works to satisfaction upon acquiring the needed resources and availability of man power.
The Council would implement all projects under full contract to avoid any delay in implementing similar projects.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.

b.
b.

Ceiling at Katondo Police station It was submitted that the stalled works at Katondo Police post was as a result of unforeseen additional works that needed attention before the installation of the ceiling board.

The Council completed the roofing of the Police Station upon identifying that it needed structural adjustments to with stand the winds in the area.

The ceiling board was later installed successfully.
The Council would conduct all projects on full contract so that such additional works could be covered by the contractor.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.

c. Completion of Kamuchanga Police.


It was submitted that the unimplemented project at Kamuchanga Police post was due to insufficient funds on the already running 2019 projects.

The Council through CDF committee had further allocated funds to complete the project, under the 2023 CDF funding.

The Council would conduct all projects on full contract so as to quicken the implementation of such projects.
145 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.

d. Completion of Mulungushi Primary School.

It was submitted that the unimplemented project at Mulungushi Primary School was due to insufficient funds on the already running 2019 projects.
The Council through CDF committee had further allocated funds to complete the project, under the 2023 CDF funding.

The Council would implement all projects on full contract.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.
e. The construction of a Police Post at Kafulamase.

It was submitted that the unimplemented project of constructing of a police post at Kafulamase was due to insufficient funds on the already running 2019 projects.

The project had been considered for 2023 funding among other unfinished projects.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.

 Completion of Magandanyama School - Stalled Project It was submitted that the stalled project at Magandayama School was due to unresolved land issues on the site.

The proposed site was meant for the health post.


The Council involved the District Health Office to intervene by assisting the Council with evidence of ownership of the site in question.

The project had since progressed from a school to a clinic.

The cost implication of this transfer was K1,400 000.

The Council would conduct all social economical assessments during field appraisal to ascertain the ownership of land on similar projects to avoid delay.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.
146  Construction of a Mothers Shelter and Plumbing Works of Toilets at Pollen clinic - Delayed completion of works It was submitted that the delay in completion of works at Pollen Clinic Mothers shelter was due to insufficient funds allocated to the project.

The initial allocation was meant to construct the mother’s shelter up to wall plate level and fabricate trusses.
The Council through the CDF committee had allocated additional funds amounting to K405,000, to the project, to ensure that works were completed on full contract basis.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.

Management of Liabilities g. i.


It was submitted that the failure to remit statutory and other obligations was due to financial challenges the Council was facing during the period under review.

Failure to Remit Statutory and Other Obligations The Council had come up with a payment plan which would enable it liquidate the outstanding statutory obligations.
As at 31st December, 2022, the status was as set out below: a) ZRA The Government through Ministry of Finance and National Planning did liquidate on behalf of the Council, an amount totaling K9,208,286.56, to reduce on the indebtedness.

Further, the Council had a payment plan to continue making payments.

b) NAPSA The Council had an engagement with NAPSA officials from Kabwe on the modalities to liquidate the outstanding amount.
The Council had since commenced the process of paying off NAPSA dues to some retirees to enable them obtain their retirement benefits.

A total of K194,236.50 had been provided to commence the process.

Further, the Council intended to do a debt swap with NAPSA for a small holding plot in Mpima.
c) NHIMA and Madison Funeral Scheme The Council made strides to ensure that it was current with NHIMA and Madison funeral Schemes for the period under review, were fully paid up.The officers were able to access the services as and when needs arose.

d) ZULAWU and FIRESUZ The Council cleared FIRESUZ the K10,144 that was outstanding during the period under review.

As for ZULAWU, the Council had continued liquidating the debt and the balance of the debt stood at K330,162.
There was an outstanding arrangement where K10,000 went towards debt liquidation whilst paying the current contributions as they fell due.

147 The Council would ensure that more resources were mobilised and allocated towards debt liquidation.

Further, there was a payment plan in place to ensure that the Council continued liquidating the statutory and other obligations on a monthly basis.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.

ii.

Failure to Settle Staff Obligations It was submitted that the failure to remit statutory and other obligations was due to financial challenges the Council was facing during the period under review.
The Council had made strides in the quest to pay off staff obligations.

By 31st December, 2022, the Council paid a total of K829,580.09 towards terminal benefits and K102,453.60 towards long service bonus.

In 2023, the Council had mobilised some resources amounting to K215,328.61 to liquidate terminal benefits and clear off some of the retirees with small amounts.

This arrangement would be done on a quarterly basis.
The council would ensure that more resources were mobilised and allocated towards debt liquidation.

Further, there was a payment plan in place to ensure that the Council continued liquidating staff obligations on a monthly basis.

The Council would ensure that it sets aside K100,000 every month to go towards the liquidation of its staff obligations.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the Matter.

Kafue Town Council Paragraph 25 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K61,309,887 against which amounts totaling K39,408,565 were received and generated resulting in a negative variance of K21,901,321.

See table 1 below.
See table 1 below.

148 Table 1: Budget and Income In addition, funds amounting to K2,669,058 were brought forward from the previous year bringing the total funds available to K42,077,623 out of which amounts totaling K34,175,320 were spent leaving a balance of K7,902,303.

Management Response it was submitted that the failure to collect local revenue was due to the following: Local Taxes Property rates under the local taxes were the major source of locally generated revenue.
The council had had challenges in collecting this revenue due to; 1. mismatch of data sitting on layout maps, main valuation roll and actual properties on the ground.

This proved difficult in locating some properties and distributing of bills.

2. difficulties collecting rates from LS-MFEZ which housed a number of companies whose total rates due to the Council stood at K9,490,903.16 on property rates as at 31st December, 2021.
The Council was updating its main Valuation Roll through the appointed Valuation Surveyor from the Government Valuation Department.
The Council had also engaged key stakeholders in the matter concerning collection of rates like the management of Lusaka South Multi Facility Economic Zone (LS-MFEZ),Ministry of Local Government and Rural Development, Ministry of Commerce, Trade and Industry and Secretary to the Treasury to help in resolving the bureaucratic concerns raised by LS-MFEZ in collecting the cited local taxes.

Arising from these engagements, LS-MFEZ had paid one million Kwacha towards the outstanding arrears.
However, the payment plan was yet to be agreed.

The Council had embarked on the process of coming up with an updated 2022 main Valuation Roll to harmonise the mismatch of data.

It will also continue to engage the stakeholders for the need to pay local taxes in order for the Council to provide better municipality services.
149 No.Source of Funds Budget K Income K Variance K Locally Generated1Local Taxes 19,141,456 2,478,096 (16,663,360) 2Fees and Charges 17,335,718 13,624,286 (3,711,432) 3Licences 3,220,873 4,126,164 905,291 4Levies 2,430,378 1,615,577 (814,801) 5Permits 2,702,950 1,561,551 (1,141,399) 6Other Income 534,000 719,281 185,281 Sub Total 45,365,375 24,124,955 (21,240,419) National Support7Local Government Equalization Fund14,044,512 13,533,610 (510,902) 8Grants in Lieu of Rates 300,000 150,000 (150,000) 9Constituency Development Fund 1,600,000 1,600,000 - Sub Total15,944,512 15,283,610 (660,902) Total61,309,887 39,408,565 (21,901,321) Committee’s Observations and Recommendations The Committee urges the Accounting Authority to as a matter of urgency, draw up a repayment plan with the LS-MFEZ.
The Committee will await a progress report on the matter.

Fees and Charges, Levies, Permits It was submitted that the failure to collect fees and charges, levies, permits as budgeted for was due to the adverse effects of COVID-19, especially on revenue streams that were client initiated such as, hire of halls, library membership fees, hire of grounds/stadia, extension of business hours.
However, land record/Occupancy licence vote was re-aligned from fees and charges to Licences hence under collection on fees and charges and over collection of Licences.

The Council had embarked on a vigorous revenue collection exercise by distributing bills, demand notices and engaging bailiffs.

The Committee was informed that the exercise of stakeholder sensitisation, distribution of bills, demand notices and engagement of bailiff would be done continuously.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Licences and Other Income The Council had over collected on licences and other income due to an unprecedented demand particularly on firearm/ammunition licences, and liquor licences, especially towards the 2021 August election period.
Land record/occupancy licences was re-aligned from fees and charges to licences vote and hence under collection on fees and charges and over collection on licences.

The Council had adjusted its stocking levels of licences in order to meet the demand.

It was submitted that the Council would always be taking into account economic, social and political factors that might influence revenue projections at the time of budgeting in order to reflect the reality as it unfolded.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.
b.

Environmental Management – Poor Management of Kafue Dumpsite It was submitted that the poor management of the dumpsite was due to the fact that the dumpsite being used was temporal, while the Council was looking for land to establish a permanent and appropriate dumpsite.

It was also submitted that during the period under review, this dumpsite was being operated by a private firm called Mannix Solid Waste Management Limited, on a franchise basis.
However, due to poor maintenance of the dumpsite, Management decided to terminate the franchise on 04th March, 2022.

150 The Committee was informed that due to the temporal status of the dumpsite, coupled with its close proximity to residential areas, the Council passed a resolution under Committee Minute number HESS/05/09/2021 and Ordinary Council Minute Number C/8/12/2021 to decommission the temporal dumpsite and urgently secure land that would be commissioned as a dumpsite.
Furthermore, the Council had set aside funds amounting to K718,614.20 in its 2023 budget to go towards securing land for the creation of a new dumpsite where other accompanying facilities such as fencing would be constructed after securing an approval from ZEMA.

The Council went further to place an advertisement in the print media as well as engaging other stakeholders with bare land that could be commissioned as a designated dumpsite.
Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to designate a dumpsite, risking the health of the community.

The Committee find this violation of the law and regulations unacceptable and urges the Accounting Authority to urgently address the matter, without fail.

The Committee will await a progress report.

c. Management of Payroll and Other Staff Related Matters i.
Failure to fill vacant positions It was submitted that the cause of the query was due to the Local Government Service Commission’s delay in responding on time to the request to fill the vacant positions cited.

The Council had been following up with the Local Government Service Commission to appoint officers to fill up the cited positions.

The Council was yet to receive feedback from the Commission.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Over Employment of Staff It was submitted that the mandate to employ and deploy officers was a preserve of the Local Government Service Commission and the Council only received the deployed officers.
It was also submitted that the Council had been communicating to the Local Government Service Commission on the issue of over employment.

Committee’s Observations and Recommendations The Committee expresses concern on the matter and urges the Accounting Authority to re- engage the Commission on the matter.

The Committee will await a progress report.


d. Management of Assets - Failure to Maintain Properties It was submitted that the failure to maintain assets was as a result of liquidity challenges to finance all of its infrastructure within the swimming pool premises.

It was also submitted that maintaining of the infrastructure within the swimming pool was been done in a phased manner as set out hereunder.
151  The Council commenced the maintenance of its assets within the swimming pool premises by starting with the bar during the 2022 budget; and proceed with the maintenance of the actual swimming pool during the 2023 budget.

In view of the above, the Council had set aside funds amounting to K910,000 in its 2023 budget towards the maintenance of the actual swimming pool.

Part of the front view of the swimming pool premises.
Front view of the bar at the swimming pool 152 Interior view of the bar at the swimming pool premises Bar counters at the swimming pool premises The Council will ensure that in all of its annual budgets there will always be funds set aside for maintenance of its assets in accordance with the Councils maintenance policy.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the maintenance of the bar and swimming pool as they would serve as revenue earners for the Council.

The Committee also urges that submit supporting documents be availed to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

153 e. i.
153 e. i.

Management of Constituency Development Fund Construction of a Clinic at Chipapa ● Delayed completion of the Clinic Management Response It was submitted that the delayed completion of the clinic was due to loss of construction time arising from poor road network during the rain season because of the geographical terrain where the project was located and the slow construction pace by the contractor.
The Committee was informed that due to the slow construction pace by the Contractor, management terminated the contract on 08th June, 2022 and the Council took over the construction of the clinic after contract termination and procurement processes were concluded and it was due to be completed by 15th April, 2023.

The Council would continue to carry out due diligent when awarding contracts and also close monitoring and supervision of projects.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the completion works of the health facility, without delay.

The Committee will await a progress report on the matter.

Failure to terminate and claim Liquidated damages It was submitted that at the time of the audit, some contract termination documents and liquidated damage charge documents were not availed to the auditors.
It was submitted that the contract was terminated on 08th June,2022 after which the contractor was invited to a project close out meeting.

It was regrettable that at the time of the audit, some contract correspondence documents were misfiled and not availed for audit.

However, these had since been located and available for reference.

It was further submitted that Liquidated damages were charged against the contractor in accordance with the contractual terms of reference.
The council would always ensure that due process was followed in an event of project termination and liquidated damages were charged accordingly.

154 Figure 1: Completion of blockwork under force account Figure 2 Completion of blockwork under force account Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to expedite the construction works without delay.
The Committee urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

155 f. Management of Liabilities - Failure to Remit Statutory Obligations It was submitted that the failure to remit statutory contributions on time as required by the regulation were due to liquidity challenges which the council was facing.
The council was in a mutual agreement with LASF under the auspices of the Ministry of Local Government and Rural Development, to be deducting this liability at the source of its Local Government Equalisation Funding which was being implemented.

The council had also engaged NAPSA to enter into a payment plan in order to offset the arrears.

The Council had also been attending to all matters patterning to NAPSA claims for retired officers and deceased cases as they arose on the first come first serve basis.
The council had also written to the Zambia Revenue Authority for a penalty weaver in line with the amnesty ZRA was offering to councils.

The Council would continue to pay the obtaining obligations to avoid further contraction of the debt and also continued discussing with NAPSA, ZRA and LASF on how the arrears would be dismantled.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the offsetting of the outstanding liabilities and obligations as failure to do so was in gloss violation of the law and the workers Conditions of Service.

The Committee will await a progress report on the matter.
Kalulushi Municipal Council Paragraph 26 1.1 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council had budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K93,309,129 against which amounts totaling K74,171,803 were received and generated resulting in a negative variance of K19,137,326.

See table 1 below.
See table 1 below.

156 Table 6: Budget and Income Management Response Local Taxes The Accounting Authority submitted that the under collection was attributed to non-payment of property rates by Chambishi Metals as ZRA had placed a garnish on their accounts, while ZESCO Limited had asked for remission on property rates.
Fees and Charges The Accounting Authority submitted that a ministerial directive which prohibited Council from leasing or selling Council properties (Land inclusive) made the Council fail to collect from sell of plots in Lukoshi area.

Licences The Accounting Authority submitted that the over collection on this vote was due to formation of the taskforce.

This helped to increase revenue collection for the period under review.
Levies The Accounting Authority submitted that the variance was caused by the gutting of Copperbelt Forestry Co-operation (CFC) factory and was not operational at that the time causing the Council not to collect the desired revenue.

Permits The Accounting Authority submitted that the unfavourable variance was mainly attributed to closures of businesses due to restrictions on COVID-19.
Local Government Equalisation The Accounting Authority submitted that the variance in question was as a result of deductions at source.

These deductions were for Fire Truck Insurance, LASF, ZULAWU and FIRESUZ.

157 These were being remitted directly by the Ministry of Local Government and Rural Development.
It was submitted that the funds in question amounting to K19,366,617 had been collected resulting in the favourable variance of K229,341 as shown in the table below; No Source of Funds Variance K Amount Collected K Variance K Locally Generated Local Taxes Licences (14,656,925) 16,973,817 2,316,892 267413 0 267,413 Fees and Charges (3,772,422) 2,020,650 (1,751,772) Levies Permits Commercial Venture (65,195) 99,550 34,355 (278,661) 65,793 272,600 (6,061) 65,793 Sub Total (18,439,997) 19,366,617 926,670 National Support Local Government Equalisation Constituency Development Fund (689,690) - - 11 Other Receipts Sub Total Total (7,639) (697,329) (689,690) - (7639) (697,329) (19,137,326) 19,366,617 229,341 Committee’s Observations and Recommendations The Committee expresses concern that while the Accounting Authority had in some instances blamed COVID-19 for the failure to collect revenue, the same had not affected other streams.
In this regard, the Committee urges the Accounting Authority to be proactive and ensure that the task forces are put in place to collect revenue in all streams without delay.

The Committee will await a progress report on the matter.

b.
b.

Operational Matters - Failure to Carry out Road Maintenance The Accounting Authority submitted that Luangwa, Luapula and President Avenue roads were under the prerogative of Road Development Agency because they were M10 roads, however the Council had worked on the parts which were extensively damaged.

Lukanga road had high traffic volumes which caused the road to keep eroding due to heavy trucks carrying logs from 158 Lamba and Chati ZAFFICO plantation.
North Kalengwa was not maintained at the time of the audit because the Council had inadequate road equipment to deal with road maintenance.

Luapula Road Periodic maintenance on bad sections was done.

Photo showing Maintenance of Luapula Road A detailed assessment was conducted and it was established that the downstream drainage and culverts which should have served as the primary drainage structure was inadequate.
This prompted Council to reconstruct the primary drainage with adequate sizes of culverts and enlarged drainage facility.

159 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the road maintenance works are completed without delay.

The Committee will await a progress report on the matter.

President Avenue Few potholes that developed on the road had been worked on and the road was in good state.
See photos below Photo showing pothole mending on president avenue Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee resolves to close the matter subject to audit verification.

Lukanga Road The pothole had been worked on and done using reinforced concrete works.
160 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee resolves to close the matter subject to audit verification.

North Kalengwa Road Kalulushi Municipal Council had since procured road construction equipment and the said North Kalengwa Road had been worked on.
See photo below: 161 In addition, Ministry of Local Government and Rural Development was written to, recommending and requesting for funds to consider the construction of a dual carriage way between Kitwe and Kalulushi.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee resolves to close the matter subject to audit verification.
Management of Revenue - Failure to Collect Receivables c. The Accounting Authority submitted that the there had been resistance by residential property owners to pay rates.

It was submitted that the Council had been continuously sensitising the community besides running the 50 per cent promotion for residential properties on radio.
The Committee was also informed that the Council had since collected amounts totaling to K2,270,339.33 leaving a balance of K11,892,640.67 as shown in the table below; No Type of Revenue Balance B/F 1 2 3 4 Commercial Rates Residential Rates House Rent Totals (K) 2,172,887 11,861,614 128,479 14,162,980 Amount Collected (K) Outstanding Amount(K) 1,709,955.44 462,931.56 476,582.22 11,385,031.78 83,801.67 2,270,339.33 44,677.33 11,892,640.67 The Committee was further informed that the Council would issue demand notices and subsequently, warrants to the Sheriff so that the property rates owed could be recovered.
Committee’s Observations and Recommendations The Committee notes with dismay that the Council failed to collect revenue and was not proactive to put measures in place to collect revenue.

In this regard, the Committee urges the Accounting Authority to ensure that pragmatic measures are put in place to enhance the revenue collection without delay.

The Committee will await a progress report on the matter.
Failure to Confirm Officers on Probation d. Management of Payroll and Other Staff Related Matters i. Kalulushi Municipal Council made submissions of the said cases to the Local Government Service Commission immediately after the full Council that was held on 31st December, 2021.

A re-submission was made on 23rd January, 2023 to the Local Government Service.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter.
The Committee will await a progress report on the matter.

162 Over Employment of Staff ii.

Kalulushi Municipal Council had three sub-Centers which lead to some positions to have more than the required number in accordance with the staff establishment.

The Council had made a submissions and re-submissions over the excess staff to the Local Government Service Commission.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter.

The Committee will await a progress report on the matter.

Employees Without Requisite Qualifications iii.

Employing of staff was a mandate of the Local Government Service Commission.

Therefore, the matter was reported back to the Commission for a final decision.
Most of the employees who were found to have no adequate qualifications had since acquired the relevant qualifications and had since submitted copies of their qualifications.

While some who were still pursuing their studies had submitted acceptance letters and transcripts.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter.

The Committee will await a progress report on the matter.
Failure to Complete Projects – Construction of Truck Park Inn e. Management of the Local Government Equalisation Fund i.

It was submitted that some of the works cited were not under the jurisdiction of the Council to perform.

This included power connection and authority to create turning points and access road from the dual carriage way.

It was stated that the following listed down activities had been done and completed: Fencing a.
The Fencing had been done except on one side where there was a settlement dispute.

Paving b.

Clearing, leveling and compaction had been done.

The sub base had been done (filling with waste rock) to improve the ground bearing capacity as trucks were heavy transit machines.

Construction of Lodging House c. This was yet to be constructed as the location of the lodging house fell in the area of land settlement dispute.

Construction of Restaurant d. This had been completed.
Electrification At the time of the audit, all the facilities had internal wiring done, and tested for performance using a Genset and it was positive.

Zesco had installed a transformer.

163 Fencing Fence had been partially constructed.

The other side of the truck park inn area was under land dispute and the Council was waiting for the resolution of the dispute to further the works.
See photos below Photos showing front part fencing of the Truck Park inn 164 Paving The paving of the partially opened area had been done by dumping, spreading, leveling and compacting of waste rock on the truck park inn.

165  Photos showing completed waste rock paving Construction of the Lodging houses.

The area that had been identified for this facility fell under the land which was under dispute and were waiting for the resolution for further works to commence.
Construction of Restaurant This had been completed.

166 Electrification After a series of letters to ZESCO Limited regarding delayed power connection to the facility, even after payment for the connection, two years past.

It was a letter written on 3rd February, 2023 over the electrification of the truck park inn that prompted ZESCO Limited had responded by electrifying the place.
167 As Kalulushi Municipal Council prepared to operationalise the trucking facility, a letter had been written to Road Development Agency (RDA) and Road Transport and Safety Agency for consent regarding introduction of an access road to the facility and guidelines on road safety measures, respectively.

The Council intended to take the legal action against the illegal settlers.
168 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Constituency Development Fund Construction of an Ablution Block at Chibuluma Primary School f. i.

It was submitted that the contract given to Zoneridge did not include the construction of a septic tank and soak away as part of the scope.
The septic tank and soak away were set to be done at a different phase and funding.

The Committee was informed that the construction of a septic and soak away had been completed.

See picture below Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Land Management Failure to Create Access Roads i. ii.
At the time that the plots were created and numbered, Kalulushi Municipal Council did not have adequate funds to undertake the beaconing and road works.

This was further exacerbated by the lack of adequate equipment for road construction.

The Council intended to use the money realised from the sale of the plots to open up the road network in the area.

169 Kalulushi Municipal Council had since procured road construction equipment such as Water Bowser, two Tipper Trucks and a Grader.
The Council had further engaged a surveying firm (Calvary technical services) to undertake the beaconing of the area as well as production of the survey diagrams at a cost of K587,200.

The survey works were underway.

Kalulushi Municipal Council would endeavor to adequately budget for opening up of new areas and had since included an amount of K750,000 for survey works in the 2023 budget.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the survey works and ensure that access roads are created without delay.

The Committee will await a progress report on the matter.

Questionable Reservation of Alternative Plots iii.


It was submitted that the Council had been burdened with a number of individuals who for many years had not taken possession of their previously allocated plots, and it endeavored to sought out these issues as and when land was identified and available for offer, the allocation of alternatives was necessitated so as to avoid legal suits which were time consuming and not financially viable for the Council.
It was also submitted that after the creation of residential and commercial plots in Lukoshi in 2020, Council advertised the said plots in 2021 and conducted interviews and allocated 176 plots to successful applicants out of the 367 created.
The Council also reserved 100 plots to be issued as alternative plots to individuals that had earlier been allocated plots, but could not take possession of the said plots for one reason or another, the Council also intended to issue alternative plots under the case of Moses Walima and others Vs Kalulushi Municipal Council that was settled by way of consent judgment where a total number of fifty alternative plots were reserved for the Walima case.
The Council had put in measures to the effect that whenever land was identified, planned and available for offer.

Management would reserve specific number of plots to settle issues of alternative plots.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iv.
iv.

Questionable Allocation of Land Reserved for Construction of Modern Civic Centre Kalulushi Municipal Council re-planned plot LN/1000001041/200 for the purposes pending issues of relocations of commercial plots within Kalulushi.

A total of ten plots were created from the said re-planning.

The created plots were as follows; LN/1000001041-61, 62, 252-259.

NAPSA CBD area.
NAPSA CBD area.

170 According to Council records as of 22nd July 2022, the said re-planned plots were issued to individuals by Ministry of Lands and Natural Resources.

Council did re-allocate plot LN/1000001041/62 to Coppertone Investments on 7th October, 2019, pursuant to Minute number PIMSC/113/09/19.

The said company did make a payment to Kalulushi Municipal Council in the amount of K56,000 on 18th October, 2019.
After a ministerial directive that the plot originally planned to be used for construction of new Civic Centre be reverted back to its initial use, the Council did write to Ministry of Lands and Natural Resources, pertaining to the same issue and to have the land titled in the name of Kalulushi Municipal Council.

The Council could not identify the developers because Ministry of Lands and Natural Resources, directly issued them offer letter without consulting the Council.
The Committee was informed that efforts were being made to liaise with Ministry of Lands and Natural Resources to cancel any documentation issued to the said individuals so as to enable Council obtain title deed for the pieces of land which were not yet developed.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to follow up the matter with the Ministry of Lands and Natural Resources without delay.

The Committee will await a progress report on the matter.
g. Management of Liabilities - Failure to Remit Statutory Obligations It was submitted that the Council had signed time to pay agreements with three institutions namely NAPSA, ZRA and LASF where the Council was paying the existing bill with an agreed amount from the arrears.

The Council had since remitted K8,254,570.11 towards the existing statutory obligations and K13,766,210.17 for the arrears as shown in the table below; No.
INSTITUTION BALANCE AS AT 31.12.2021 CURRENT ARREARS BALANCE AT AS 10.02.2023 1 2 3 ZRA 13,258,891.00 4,294,688.87 10,552,253.66 2,706,637.34 NAPSA 6,289,204.00 3,178,987.69 1,845,435.76 LASF 2,738,364.00 780,893.55 2,770,443.99 4,443,768.24 - 32,079.99 TOTAL 22,286,459.00 8,254,570.11 15,168,133.41 7,118,325.59 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the offsetting of the bill with regard to outstanding statutory obligations as failure to do so was in gloss violation of workers 171 Conditions of Service and regulations.
The Committee will await a progress report on offsetting of the outstanding balance.

Kapiri Mposhi Town Council Budget and Income Paragraph 27 a.

During the period under review the Council had budgeted to receive grants from the Ministry of Local Government and Rural Development and to collect locally generated income from various sources in amounts totaling K45,299,100 out of which amounts totaling K29,162,366 were received and generated resulting in a negative variance of K16,136,734.
See table 1 below.

Table 1 Budget and Actual Income In addition, funds amounting to K7,203,278 were brought forward from the previous year bringing the total funds available to K36,365,644.

As at 31st December, 2021 amounts totaling K27,232,032 had been spent leaving a balance of K9,133,612.

Management Response 1.


Local taxes/Rates The Accounting Authority submitted that the Council failed to collect K4,372,857 out of budgeted local taxes/Rates amount of K9,003,975, and attributed the failure to a 50 per cent remission (K1,850,000) granted to Lunsemfwa Hydro Electricity Power Company, out of the expected annual amount of K3,700,000 during the year.
Further, rate collections were affected by TAZARA Limited’s failure to pay over K10,000,000 owed to the Council due to serious financial challenges the company was facing.

The Council had attempted to serve a warrant of distress on TAZARA, to recover the over K10,000,000 owed to the Council but the TAZARA Act protected the Rail company from such action.
The Council would promote stakeholder engagement with the rate payers, so that matters 172 of remissions in respect of the new year were handled in the previous years so that approved remissions were deducted from the new year’s budget figure.

Fees and Charges 2.
Fees and Charges 2.

It was submitted that the failure to collect a total sum of K15,989.840, in fees and charges, during the year 2021 but ended up collecting only K5,086,264.40 due to the continued delay to resolve the Kapiri south prime land matter that was before the Lands tribunal.

Management had, however, engaged the squatters in the Kapiri south zone to settle the matter out of court.

The Council had since obtained a consent order settlement from the Lands Tribunal and had commenced implementation.
The Council would continue to promote stake holder engagement on matters of land in the Kapiri-Mposhi South zone, in order to maximise revenue from plot premium fees.

3.

Licences It was submitted that the failure to collect licences was because of use of old data base.

The Council was in the process of updating its data base on licences so that realistic budgetary amounts were incorporated in the estimates of revenue and expenditure, with assistance from the Local Impact Governance Project under USAID.
The Council was updating its revenue database in so far as business traders were concerned so that the budgeted amounts were closer to reality.

4.

Levies The Council regretted the query that it failed to collect K3,274,150 but ended up collecting only K1,940,093 due to a number of factors such as diminishing revenue sources like fish, timber and charcoal levies.

Along the years these had continued to decrease and affecting this vote.
Also refusal by FRA to collect grain levy on behalf of Councils across the country had a terrible effect on this vote.

The Council had made a collective appeal with other Councils, through the Local Government Association of Zambia for the Government to direct FRA to collect Grain levy at source as farmers sold there produce at FRA.
Further, the Council had requested the Forestry department to make charcoal and timber traders pay for Council levy at the same time they were paying for production and conveyance licences with the department.

Permits 5.

The Council regretted the query that it failed to collect K895,698 budgeted under permits, but only collected K305,488, due to an out of date data base on business permits.
The Council was under taking a revenue data base update with assistance from the Local Impact Governance Project of the USAID so that realistic budget amounts were incorporated in the council budget.

Commercial ventures 6.

The Council lodge hosted less than half of the budgeted workshops, due to the growing competition in the hospitality industry in the District.

Further, the small number of rooms prohibited the Council to host large workshops.
173 The Council had developed a business survival plan for the lodge and was open to innovations that would keep the lodge afloat.

Further, Council had continued with expansion of its lodge with the on-going construction of the thirty-four room hotel.

The Council was taking a proactive rather than reactive approach to competition as evidenced with the thirty-four roomed hotel construction project.

Other Income 7.
Other Income 7.

The Council regretted that it failed to budget for other income during 2021 but ended up collecting K990,989.

The income budgeted under this vote was from the ZESCO way leave clearing contract which had a lot of uncertainty as to its availability.

Despite the uncertainty surrounding the ZESCO way leave contract, in future estimates, the Council had decided to be providing a modest figure under other income vote so that there was at least some budgetary allocation.
Committee’s Observations and Recommendations The Committee observes with concern that the Council has failed to record a positive variance under locally generated revenue, on budgeted streams and only recorded a positive on the unbudgeted for stream.

In this regard, the Committee urges the Accounting Authority to be realistic when coming up with the budget to improve credibility of the Council budget.
The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Operational Matters Failure to maintain street lights b. i.

It was submitted that the failure to replace the vandalised street lights was for fear that they would be vandalised again, in the absence of adequate security.
Two of the vandalised street lights had since been replaced at a cost of K14,000 and the Council would continue with the exercise as and when funds were available.

Routine night security patrols by Council police unit had been intensified.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the replacement of street lights without delay.

The Committee will await a progress report on the matter.

Failure to Control and Manage Markets ii.


It was submitted that the failure to effectively run the markets was due to non-availability of market boards to assist the Council in the running of the same.

No action had been taken to form market boards following a circular from the Ministry of Local Government and Rural Development directing the Councils to put the exercise on hold until further notice.
It was submitted that Ward development Committees (WDCs) would be involved in the running of markets in remote areas of the district, at a commission of 30 per cent.

174 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the Council takes advantage of the existing trading areas to ensure that relevant revenues are collected from the trading areas.
The Committee will await a progress report on the establishment of Market Boards without delay.

Accounting for Revenue - Failure to Collect Revenue c. It was submitted that Commercial rates amounting K12,474,391 could not be collected due to Financial distress, 50 per cent remission and liquidation of rate payers respectively.

Warrant of distress served on TARARA but the Tazara Act protected the company from such actions.
The Council was attempting to sue the Managing Director to compel him pay something towards rates and Communication masts.

Zesco had since paid for the Pole levy.

Remission agreements to be made prior to preparation of estimates so that they were deducted in the budgetary allocation in advance.

A court action to be brought in the name of the Managing Director for TAZARA to compel him pay arrears.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

Management of Payroll and Other Staff Related Matters Failure to Fill Vacant Positions d. i.

It was submitted that the recruitment of officers from Division I to Division III was the preserve of the local Government Service Commission, Pursuant to the Service Commission Act, No.
10 of 2016, and all Council could do was to alert the commission of any positions that became vacant.

The Council has continued to alert the Local Government Service Commission through the quarterly staff retains of any vacant positions, and the commission has commenced sending officers to fill some of these vacant positions.

The newly created District Human Resource Committees, an extension of local Government Service commission would alleviate the problem.
Committee’s Observations and Recommendations The Committee expresses concern on the matter and urges the Accounting Authority to re- engage the Commission without delay.

The Committee will await a progress report on the matter.

Over employment of Staff ii.


It was submitted that the recruitment of staff in divisions I, II and III remained the preserve of the Local Government Service Commission and Council could not dictate officers to be sent to the local authority, except for advising the Commission accordingly.

175 Council had advised the Local Government Service Commission of the over staffing in certain positions and awaited action on the matter.
Council would continue with its obligation of advising the Commission on any over staffing.

Committee’s Observations and Recommendations The Committee expresses concern on the matter and urges the Accounting Authority to re- engage the Commission without delay.

The Committee will await a progress report on the matter.

iii.

Failure to Confirm Officers It was submitted that the confirmation of staff in Divisions I – III was done by the Local Government Service commission and not the Council.
The Council had made submissions, from time to time, on the matter to the Local Government Service Commission who had since responded.

The Council would, timely, alert the Local Government Service Commission of any staff that required confirmations as and when need arose.

Committee’s Observations and Recommendations The Committee expresses concern on the matter and urges the Accounting Authority to re- engage the Commission without delay.

The Committee will await a progress report on the matter.
Lack of Title Deeds e. Management of Assets i.

It was submitted that the Council had faced difficulties in having documentation for submission, in time, to Ministry of Lands and Natural Resources for obtaining title, for most of the properties, because majority of them needed to be re-planned.

Council resolution had been obtained having most of the properties put on title and a payment to the Ministry of Lands and Natural Resources, to have them numbered, had since been made.
The Council would in future obtain title deeds for its properties before embarking on developing them.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the properties are secured without any further delay.

The Committee will await a progress report on the matter.

ii.

 Failure to Maintain Properties Push Hall The roof was blown off, windows were removed and paint had peeled off.
The Council did not undertake any renovation works on the Push Hall because the costs of doing such works, by far outweighed the benefits.

The structure was in a deplorable state such that it was prudent, for the Council, to have it demolished and erect a new one.

176 Very little had been done on the matter as the Council awaited Council decision on the proposal to offer the Land, where the Push Hall was sitting, to a donor who intended to put up a Youth skills training centre in the district.
Management awaited to obtain a Council resolution on the matter Dilapidated Push hall Committee’s Observations and Recommendations The Committee resolves to await a progress report on the matter.

f. Management of Constituency Development Funds (CDF) - Failure to Implement Funded and Approved project It was submitted that the Council was battling with lengthy procedures of obtaining a frequency, broadcasting license and formation requirements to constitute a board for the Community Radio Station.
The Council had continued to engage the Independent broadcasting Authority (IBA) in order to resolve the issue of obtaining a frequency, broadcasting license and formation of a Board for the Community radio station.

Council would constantly persuade the Independent Broadcasting Authority (IBA) to have the two matters mentioned above, resolved quickly.
Committee’s Observations and Recommendations The Committee expresses concern on the matter and urges the Accounting Authority to re- engage the IBA without delay.

The Committee will await a progress report on the matter.
g.  Management of Local Government Equalisation Fund Construction of a Community Library - Delay in completion of works The Committee expresses concern that the dispute between a contractor and the Council, over some changes in the scope of works on the ground, that were not included in the contract document and required variations.
177 The Council engaged a contractor, who had built up to Lintel/ Ring beam level and was paid IPC issued up to that level, and an agreement as to the value of the variation was reached.

Despite a variation agreement having been reached, contractor has not re-taken site possession.

Council was in the process of terminating the contract, in accordance with terms of the contract and the applicable pieces of legislation on the execution of the Government contracts.
Committee’s Observations and Recommendations The Committee will await a progress report on the matter.

h. i.

Management of Liabilities Failure to Remit Statutory and Other Obligations It was submitted that the Council had engaged NAPSA and LASF for a land debt swap as per attached Council minutes and letters to the two institutions.

Further, the Council made the following payments in the year 2022, to reduce the 2021 arrears; i. LASF K96,348.22 ( at source from LGEF) ii.

ZRA K25,000 ZULAWU K80,580 iii.


iv.

FIRESUZ K15,000 v. NHIMA K103,000 Recovery of payments to ZULAWU and FIRESUZ at Source from the Local Government equalisation fund grant at the Ministry of Local Government as well as entering into payment restructuring agreements with NAPSA, LASF and ZRA.
Further, in addition to the exiting LASF obligations being recovered at source, Council had agreed with LASF to be deducting K15,000 per month at source from the Local Government Equalisation Grant (LGEF), to go towards LASF arrears.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of statutory obligations, which was consistent with the workers Conditions of Service, and relevant tax and employment regulations.
The Committee will await a progress report on the dismantling of the debt without delay.

Failure to Settle Staff Obligations iii.

It was submitted that the failure to pay outstanding staff obligations was due to financial constraints.

Notwithstanding financial constraints, Council had made efforts to dismantle the debt burden and had made the following in 2022: i. ii.

iii.
iii.

Long service bonus K 50,000; Terminal Benefits K 849,,038; and Settling in allowances K11,860 178 The Council had devised a payment plan to dismantle the debt by allocating a monthly figure of atleast K150,000 to go towards payment of long service bonus, terminal benefits, settling in allowances and leave benefits.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of staff obligations, which was consistent with the workers Conditions of Service and relevant tax and employment regulations.

The Committee will await a progress report on the dismantling of the debt without delay.
Kasama Municipal Council Paragraph 28 Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totalling K32,599,257 against which amounts totalling K30,651,811 were received and generated resulting in a negative variance of K1,947,446.

As shown in table 1 below.


Table 1: Budget and Income Income K Variance K 2,224,769 7,472,580 317,739 1,621,714 818,911 46,730 75,885 1,408,313 699,395 67,000 14,538,937 12,502,443 14,560,320 14,409,368 (1,811,723) (779,272) 241,854 213,401 119,516 (20,270) (2,036,494) (150,952) No.
of Budget K Source Funds Locally Generated Local Taxes 4,036,492 Fees and charges 8,251,852 Licences Levies Permits Other receipts Sub total National Support Local Government Equalisation fund Constituency Development Fund Other Grants Sub Total TOTAL 3,200,000 3,200,000 - 540,000 300,000 18,060,320 18,149,368 32,599,257 30,651,811 240,000 89,048 (1,947,446) 179 In addition, amounts totalling K4,537,938 were brought forward from 2020 bringing the total funds available to K45,389,749 during the period under review.
Management Response It was submitted that the Council did not perform at 100 per cent in certain budget lines as outlined in the table below: 180 Source of Funds Budget K Income K Variance K Cause Query of Action Taken Remedial Measures Locally Generated Local Taxes 4,036,492 2,224,769 (1,811,723) It was submitted that the adverse variance of K1,811,723 was due to non-payment of property rates by property owners.
The Council had issued out demand notices to all affected the leaseholders with outstanding balances for property rates.

Arising from this measure, Council the had since collected K1,811,723 mainly from.
FRA, Northern Coffee Corporation, Zesco Limited, Zambia Airports Corporation, Zambia Development Agency, Geoffrey 181 such of would Council The endeavour to strengthen the revenue collection strategies put in place in order to enhance revenue collection as efficiency engagement court bailiffs, distribution of rates time, bills introduction flexible payment plans and radio sensitisation.
Further, Council was in the process of ensuring that the valuation roll was updated and all rateable properties were billed accordingly.

good of in Fees and charges 8,251,852 7,472,580 (779,272) Sikaonga, Zambia National Building Society, Madhusudan, Dave Vinayaka Enterprises, Noble Nsofu, Mathews Chinga, John Chinunda and Village Industry Service.

The Council had issued final reminders to all debtors to ensure they settled outstanding balances.
The total amount of K387,241 had since been collected from the debtors.
The Council had identified, reopened The under-collection of market fees, plot premiums, billboards fees and rental fees was as a result of slow economic activities in the district due to COVID-19 and strict measures were put in place the to curb pandemic and as such of number the operating hours were drastically reduced and some businesses completely shut down, such as bars 182 The Council would ensure that regular reminders were made to clients with cash plans before the payment fell due and Council would ensure timely collection of the charges.
and Further, the Council would continue the markets register, billboards other database ensure businesses collection efficiency.

updating and to fees and restaurants.

The under-collection was due to ZESCO not offering a contract for wayleave despite having Council budgeted in it 2021. for relaxed businesses after COVID-19 restriction measures and had Council since collected K4,585,773.68 31st as at December, 2022.
The Council did not include ZESCO way the leave in for budget 2022 in order to have realistic income estimates.

The Council had undertaken to ensure that it did not ZESCO budget for shall wayleave engage endeavour ZESCO before budgeting for wayleave income.
and to The acknowledged Auditor observation reduction Council the General’s on the of All deductions at source were as disclosed adjusting items in the General The Council would strictly follow the approved Budget Circular from the Ministry of Local Government and Rural Development when 183 Licences Levies Permits Other receipts 75,885 1,408,313 699,395 67,000 317,739 1,621,714 818,911 46,730 241,854 213,401 119,516 (20,270) Sub total National Support Local Government Equalisation fund 14,538,937 12,502,443 (2,036,494) 14,560,320 14,409,368 (150,952) expected LGEF due to at deduction the source such as union and statutory audit fees.
Purpose Financial Statement.

budgeting of rates The Council had over budgeted by K240,000 for Grant in as lieu compared to what was from received of Local Ministry and Government Rural Development The Council would ensure that realistic amounts were included on Other Grants with proper consultation with the Ministry of Local Government and Rural Development.

The Council would strictly follow the approved Budget Circular from the Ministry of Local Government and Development when budgeting.
Rural Constituency Development Fund Other Grants 3,200,000 3,200,000 - 300,000 540,000 240,000 Sub Total TOTAL 18,060,320 32,599,257 18,149,368 89,048 30,651,811 (1,947,446) 184 Management Response The Committee urges the Accounting Authority to ensure that measures stimulated with regard to the enhancement of collection of revenue in underperforming streams, are actualised without delay.

The Committee will await a progress report on the matter.
Operational Matters Failure to Control and Manage Markets It was submitted that the Council acknowledged the observations by the Auditor General on the failure to control and manage the markets as the cited sixteen markets were not gazetted, instead operated under Traditional leadership control.

The Council had started the process of gazetting the markets to ensure Council controlled, having secured a Council resolution under minute No.

KMC/CDHESS/06/11/2021.


Further, the Council had already done a write up to all the chiefs concerning the new development of resolution of the Council, and continued making follow-ups with the chiefs for a possible date of meeting to discuss the way forward.
The Council would endeavour to take full control of all markets and ensure to write to all cooperating partners who had interest in supporting Kasama District that all donor funded projects in the district pertaining to markets should be handed over to the Council for easy management and monitoring.

Further, the Council would engage in sensitising marketers and market committees on the management of markets by the Council.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that Council takes charge of the running of Markets and ensure that revenue measures are enhanced without delay.

The Committee also urges the Accounting Authority to ensure that the Ministry of Local Government and Rural Development Controlling Officer is engaged on the matter without delay.

The Committee will await a progress report on the matter.
Failure to Fence the Dump Site – Airport Dumpsite It was submitted that the failure to fence the dumpsite was attributed to liquidity challenges as the dumpsite fence required a huge capital expenditure of K2,000,000.

In the bid to secure the dumpsite, the Council had embarked on fencing of the dumpsite on temporal measure to deter illegal dumpers and scavengers, by the use of wooden poles sourced from Forestry Department.
The choice of fencing material was arrived at due to the risk of loss due to theft if materials such as wire and steal poles were to be used.

The fencing was underway and Council had also plans in 2023 to put up a security office, six metres of solid wall on both sides and a toilet at the entrance.

The Council would ensure to completely fence the dump site with a concrete block wall fence once resources were available.
185 Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to fence the dumpsite and therefore, urges that the Council expedites the process without any further delay.

The Committee will await a progress report on the matter.
Accounting for Revenue - Failure to Collect Revenue It was submitted as tabulated below: 186 Source Funds of Expected K Actual Collection K Variance K Locally Generated Property rates 6,096,304 914,892 5,181,412 Cause of Query Action Taken Remedial Measures The under- collection of K5,181,412 on rates property arrears was as a non- result of by payment property owners.

The Council had issued the demand notices to all property owners with unpaid property rates.
The Council had also introduced flexible payment plan and radio sensitisation in order for the property owners to clear outstanding the balances.

Further, Council had collected a total of K2,601,241.94 previous the from outstanding balances.
The Council would endeavour to strengthen the revenue strategies collection put in place in order to revenue enhance efficiency collection such as engagement of bailiffs, court rates distribution of time, in good bills introduction of flexible payment plans and radio sensitisation.

in Council was the process of ensuring the this year that roll was valuation updated all and rateable captured properties were billed accordingly.
187 Rentals 68,893 27,438 41,455 Billboards 1,789,936 88,600 1,701,336 Total 7,955,133 1,030,930 6,924,203 under- The of collection K41,455 property rates arrears was as a result of the of outbreak and COVID-19 inertia from Council tenants.

The under- collection of on K1,701,336 billboard fees was as a result of businesses closing up in the district due to the outbreak of COVID-19.
188 The Council would regular that ensure reminders were made to clients with cash plans the before payment fell due and Council would ensure timely collection and issuance of bills.

The Council would ensure regular that reminders were made to clients with cash plans the before payment fell due and Council would ensure issuance of timely the bills.

Further, would Council continue updating the billboards database.

had Council The Council had issued eviction notices to all that had the tenants balances.
outstanding had The flexible introduced payment plan in order to the clients allow to the outstanding offset the and balances Council since collected a total sum of K164,737 from unpaid rental fees.

The had Council updated the database for the billboard in order to remove clients that had closed their up businesses and did no longer the exist district.
The Council had introduced a flexible payment plan for clients to help in the settlement of fees arrears and the Council had managed to K115,755.97 collect from unpaid billboard fees.

the in Management Response The Committee notes the response and urges the Accounting Authority to ensure that measures stimulated with regard to the enhancement of collection of revenue, are actualised without delay.

The Committee will await a progress report on the matter.
Management of Payroll and Other Staff Related Matters Failure to Fill Vacant Positions It was submitted that the Council was operating at an establishment which was not complete as per Kasama Municipal Council’s 405 approved staff establishment, as a result of lack of financial capacity to operate at full establishment without the key positions for adequate running of the Council such as Assistant Public Relations Manager, Council Advocate, IT Manager, Mechanical Engineer and Senior Quantity Surveyor.
The Council undertook to engage the Local Government Service Commission to fill the key positions of Assistant Public Relations Manager, Council Advocate, IT Manager, Mechanical Engineer and Senior Quantity Surveyor in order to enhance service delivery.

Three out of the five key positions had since been filled and Council was waiting for the other positions to be filled.
The Council was in constant engagement with the Local Government Service Commission so as to ensure the remaining key operational positions of Mechanical Engineer and Senior Quantity Surveyor were filled.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Over Employment of Staff It was submitted that the Council during the period under review was paying nine officers as these were retirees and paid salaries in amounts of K847,471, since they could not be removed from the pay roll as guided by circular number PSMD/101/14/15, dated 22nd November 2018, that allowed a retired employee to be on the pay roll until they were paid their terminal benefits.

This resulted into over employment.


Council had continued to pay and clear off the pay roll retired employees.

The Council would endeavour to liquidate all terminal benefits as and when the funds were available.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Wasteful Expenditure It was submitted that the Council did not remit the deducted monthly loan repayments on behalf of the employees as contained in the MOU entered with INDO-Zambia bank, amounting to K4,174,099 and that this resulted in awarded legal fees of K358,000.
189 The Committee was informed that this was regrettable and that the Council had agreed with INDO-Zambia Bank on the new modalities of making payments in order to liquidate the outstanding loans for employees as guided by the Ministry of Local Government and Rural Development.

The Council had since started paying INDO- Zambia Bank and so far K632,500 had been remitted.

Further, K117,500 had been paid against legal fees according to the entered payment plan.
Committee’s Observations and Recommendations The Committee bemoans the failure by the Council to remit deducted loan repayments to INDO- Zambia Bank, resulting into penalty charges.

The Committee, therefore, urges the Accounting Authority to be proactive and guard against such wastage of resources, by ensuring that funds are remitted on time.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Procurement of Goods and Services.

Printing of Receipt Books from Private Institutions It was submitted that the observation from the Auditor General was acknowledged and accepted the short coming.

The Council had stopped printing books from private companies and wish to report that with effect from 8th April, 2021, receipt books had been collected from Ministry of Finance - strong room when need arose.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Irregular use of Accountable Imprest It was submitted that the Council had completely done away with the use of accountable imprest, as this was compelled during epic period of COVID-19 as officers were undertaking community public health activities that required these materials.

The use of imprest had been completely done away with and procurement of goods and services for goods whose value were obtainable on the market was done following the normal procurement procedure.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

190 Infrastructure Development - Rehabilitation of Kapongolo Motel It was submitted that the Council had budgeted for the rehabilitation of Kapongolo motel in 2023 at a cost of K1,200,000.
Works would start in August 2023, anticipating that servicing from four loans that the Council obtained with various Financial Institutions would have been liquidated.

Further, the works would be phased starting with rehabilitation of the bar and conference hall.

The Council would commence rehabilitation of Kapongolo Motel in August 2023 according to the budget plan.
This was because the institutional loans acquired were secured by the 20 percent capital component (K254,528) of the Local Government Equalisation Fund (K1,272,643) and would be liquidated fully by August 2023.
191 S/N BANK DESCRITION OF LOAN LOAN INTERES T % LOAN AMOUNT TOTAL OUTSTANDIN G AS AT 30.09.2022 PAYMEN T OCT- DEC INTERES T OCT- DEC TOTAL OUTSTANDIN G AS AT 31.12.2022 ZANAC O INDO BANK INDO BANK INDO BANK 1 2 3 4 OF CIVIC PURCHASE BACKLOADER/TIPP ER NEW CENTRE/TAZARA MARKET CONSTRUCTION OF GUEST HOUSE PURCHASE OF 5 COUNCIL VEHICLES 24.25 29.5 29.5 29.50 TOTAL The Council would ensure to undertake projects that would be completed within the budget period to avoid carrying forward works that would deter progress in revenue generation and service delivery.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to ensure that rehabilitation works at Kapongolo Motel are completed without delay.

The Committee will await a progress report on the matter.
Management of Constituency Development Fund 193 Constituen cy Ward Project Lukashya Chiba Gradin g of 1.3Km Chiba- Luyeye Road Allocated Amount K 109,509 Amoun t Spent K 106,75 2 Contra ctor Force Accoun t Scope Works of Remarks/Ob servations Cause of Query Action Taken Remedial Measures A new system in the management of fuel had been introduced receipts where and all disposal were details on completed and time securely kept.

This would lessen the time taken to update the records on fuel management.
It was submitted fuel that all had records updated, been receipts had obtained been the from supplier and disposal details been had available for Audit verification.

of The Council acknowledges the the observation Auditor General on the 640 litres unaccounted for fuel amounting to K9,978 that was not receipted and disposal details not were audit for availed scrutiny.
However, it was submitted that at the time of the Audit, still was stores stores updating the including records the of records that transaction involved fuel management processes.

 Road formati on  Gravelli ng  Waterin g the roadbed  Compac tion As of March 2022 the project was complete.

However, the following observations were made after site inspection:  Unaccou nted for Fuel 640 litres of fuel costing K9, 978 was not accounted for as the drawings were not supported by disposal details.
A site visit conducted in March 2022, and review of Lukashya Chibun du 110,087 Constru ction of a 1x4 Classro Suchon ja Multi Trade Internat 104,32 1  Concret e works  Roofing 194 The contractor completed the works that on the project roofing included The Council allocated had additional funds the project to The Council introduced had full contracts as to compared ional Limited  Carpent ry om Block at Lwabw e Day Second ary School the of roof an inspection report revealed following:  Part the was blown off and had not been repaired as at 30th Septembe r 2022. towards beam filling and other outstanding works.
according to the scope of works.

However, this was a phased project and additional funding was supposed for to be allocated beam filling which took longer and lead to the blowing off of the roof as beam filling was not part of his works.

in to stalling.

the had phased approach executing projects avoid Further, Council strengthened monitoring to that ensure payment was only done for completed projects.
to  Beam filling the structure was not done It was questionable as to why the engineering department certified the works which were incomplete.

As at the date audit of inspection the contractor 195 Force Accoun t 201,115 175,52 4.40 Kasama Central Mulilan solo Gradin g and gravelli ng of 23.1K m Muleng a Hills Roads was not on See site.

picture below.

Classroom with blown off roof A scrutiny of the list of approved projects revealed that 23.1Km of the road was approved to be worked on.
However, the local authority only worked on 7.5Km of road the a leaving stretch of 15.6Km not done as at 30th  Road formati on  Gravelli ng  Compac tion  196 Council The the acknowledge the of observation Auditor General.

However, the money allocated to the project to was not enough the scope of meet works.

Further, the fluctuations in the fuel pump price meant that only 7.5km of the road could be completed initially the with allocated amount.
Council The had re-scoped the works and additional funds had since been allocated to the to project ensure completion.

to to The Council had undertaken allocate to enough resources projects ensure completion.

Further, the Council would only undertake full contracts as opposed to labour based, The Council had undertaken to write to the school to ensure that they engage competent a to person the complete outstanding works.
The Council would no longer do labour based projects to make sure that projects were entirely completed with the specified time frame.

in delay Council The the acknowledge Auditor Generals observation regarding the the completion of flooring, painting and decoration.

However, the Council wishes to submit that this was a labour based project and the Council has procured the materials but the PTA had not engaged the person to do the works as at the time of the Audit.
all Kasama Central Labour Based Contrac t Bululu Comple tion of a 1x3 Classro om Block at Twikat ane Primar y School 50,000 20,865  Floor and wall finishes  Joinery  Painting and decorati ons September 2022.
As at 30th September 2022, seven (7) months after the expected completion the date works were not complete the that in following works were outstanding:  Flooring Painting and decoratio n. 197 Management Response Cause of the Query and Action Taken See below in the table the responses; Committee’s Observations and Recommendations The Committee observes with concern the delayed completion of projects and the failure to avail disposal detail regarding fuel drawn.
In this regard, the Committee urges the Accounting Authority to enhance the project monitoring mechanisms in place and ensure that the projects are completed without delay.

The Committee will await a progress report on the matter.

Management of Liabilities Failure to Remit Statutory and Other Obligations It was submitted that the non-remittance of staff obligation was due to liquidity challenges.
Following engagements with the institutions the Council had started paying the debt owed in instalments and the current amounts, as and when they fell due, to avoid building up of debts The Council had since paid K3,284,988.
The table below shows the status; S/n Institutions ZRA NAPSA LASF FIRESUZ ZULAWU Balance as at 31.12.21 17,779,580 1 10,294,362 2 3,772,459 3 49,904 4 5 115,421 6 Madison Life Insurance 276,942 344,902 7 709,954 8 33,343,525 NHIMA Various Supplier TOTAL Balance as at 31.01.2023 17,704,580 Payments as at 31.01.23 75,000 1,691,471.38 8,602,890.62 3,131,466.84 640,992.16 0 49,904 0 115,421 168,007.27 108,934.73 70,073.10 274,828.90 328,436.07 381,517.93 3,284,988.24 30,058,536.76 It was submitted that the Council would undertake to settle the sums due to its staff as and when it fell due.
This would be achieved through increase in the revenue base by ensuring that the following strategies were implemented such as sensitisation on payment of local taxes, updating of the main valuation roll, formation of revenue task force and engagement of revenue agents from WDC for collection of revenue at Council barriers which were outside the radius of 10 kilometres from civic centre.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to ensure that the outstanding statutory obligations are cleared without delay.

the Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
198 Failure to Settle Staff Obligations As at 31st December, 2021, the Council owed former and existing employees amounts totalling K7,503,021 in respect of terminal benefits, settling in allowances, salary arrears, long service bonus and leave travel benefits some dating from as far back as 2012.

See table 5 below.

Table 5: Outstanding Staff Obligations Management Response It was submitted that the non-remittance of staff obligations was due to liquidity challenges.
The Council had commenced the liquidation of outstanding staff obligations in installments and would ensure that it avoided building up future debts.

The amount of K590,797 had since been paid and the table below shows the current status.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Kasempa Town Council Paragraph 29 29.1 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: 199 No.Type of Debt Balance B/F 2020 K Obligations for 2021 K Cummulative Total K Payments K Balance as at 31.12.2021 K1 Terminal benefits 3,375,408 306,536 3,681,944 251,889 3,430,055 2 Settling in allowance 204,878 268,283 473,161 100,765 372,397 3 Salary arreas 2,640,567 - 2,640,567 124,221 2,516,346 4 Long service bonus 1,146,271 - 1,146,271 5,048 1,141,223 5 Leave travel benefits 49,000 26,500 75,500 32,500 43,000 Total7,416,124 601,319 8,017,443 514,423 7,503,021 No.Type of Debt Balance B/F 2020 K Payments as at 31.01.23 K Balance as at 31.01.2023 K1 Terminal benefits 3,430,055 278,554 3,151,501 2 Settling in allowance 372,397 272,203 100,194 3 Salary arreas 2,516,346 2,516,346 4 Long service bonus 1,141,223 18,000 1,123,223 5 Leave travel benefits 43,000 22,000 21,000 Total7,503,021 590,757 6,912,265 a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totalling K15,741,264 against which amounts totalling K12,816,148 were received and generated resulting in a negative variance of K2,925,116.
Management Response Local Taxes It was submitted that the valuation roll was only awarded to Kasempa Council for the first time in December 2020 and residents started receiving rate bills in 2021 hence the reason for low compliance.

It was also submitted that the poor compliance by residential rates payers resulted into low collections.
The Council had been producing bills on time and residents were being sensitised on the importance of paying taxes to the Council by use of Public Address (P.A) system weekly announcements and on radio announcements.

Although the response was still poor from residential rates payers, steady progress had been achieved.

The Council was updating the valuation roll and truck parking bay would be operational by end of 3023.
The Council would also procure billing system by end of second quarter 2023 to enhance record keeping.
200 20212021Budget Actual Variance Locally Generated1Local taxes1,242,709 546,374 696,335 2Fees and Charges2,498,258 1,117,019 1,381,239 3Licences81,330 9,150 72,180 4Levies37,037 346,785 (309,748) 5Permits60,222 85,172 (24,950) 6Other Grants- - - 7Other Receipts21,340 39,663 (18,323) Sub Total3,940,896 2,144,163 1,796,733 National Support8Equalisation Fund10,000,368 8,791,435 1,208,933 9Constituency Development Fund1,600,000 1,600,000 - 10Other Grants200,000 280,550 (80,550) Sub Total11,800,368 10,671,985 1,128,383 Total15,741,264 12,816,148 2,925,116 SNRevenue Type Fees and Charges It was submitted that the causes of the query were as set out below.
COVID-19 pandemic that negatively affected most businesses.

i. ii.

Challenges to sign planning agreement with traditional leadership, hence did not offload plots as per budget.

The Committee was informed that the revenue collections from the Guest House had improved from an average monthly collection of K60,000 to K90,000.

The restaurant was also operating and collections were at K45,000 per month and the bar was fetching an average collection of K24,000 per month.
More revenue points had been established and data base updated.

Licences The negative variance on local revenue was attributed to the following:  most bars and restaurants businesses were licensed in previous year hence did not renew in the year 2021 because licenses were renewed every after three years.

The Council management had updated data base for all new businesses in the district and the Council Police trained to enforce the collection of licenses.
Levies It was submitted that the over collection was due to farmers that had migrated to Kasempa from Mumbwa for farming activities hence the Council collected more on grain levy.

It was submitted that the Council management had kept on updating data base for more collection of revenue.

The Council management had also created more revenue collection points within the district with the involvement of WDCs.
Permits The negative variance on local revenue (permits) was attributed to the COVID-19 pandemic that negatively affected most businesses.

The Council management had taken the following measure to improve revenue collection;   the Council management had updated the database and had issued permits to all new business houses.

the Local Government Service Commission had sent two health inspectors to ensure that all businesses did comply with health guidelines.
Other Receipts It was submitted that the positive variance on other receipts was due to penalties imposed for various offences by the Council on bus operators and business houses.

201 The Council had been advising business houses on adherence to laws and regulations.

The Council management would continue to engage bus operators and business houses, on the importance of adherence to laws and regulations to avoid penalties.
National Support The negative variance on Local Government Equalisation Fund was due to:  deductions at source for ZULAWU and other statutory obligations; and  Inadequate funding for LGEF.

The Council management had made follow up with the Ministry over inadequate funding.

The Council management had also updated the records accordingly over the deductions at source.
The Council would continue to engage the Ministry Of Local Government And Rural Development And Ministry Of Finance And National Planning for the need to increase the equalisation fund as it was not enough to meet 20 percent capital component, Councilor’s allowances and salaries and wages.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be consistent with the revenue collection measures so that all streams could record positive variance.
The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.

Operational Matters - Solid Waste Management Services It was submitted that the Council had since erected the Sign post and fenced the dumpsite.

The Council management had budgeted to procure a Tractor and tipper Track equipment using LGEF/CDF for waste management.
The Council would, maintain and treat the dumpsite using chemicals all the time With regard to compacting of the soil and covering waste at the dumpsite, the Committee was informed that waste was not compacted due to luck of Equipment.

Management Response The Committee expresses concern at the delay by an Accounting Authority to act on the management of waste.
In this regard, the Committee urges the Accounting Authority to ensure that the management of waste in prioritised and use approved methods on the management of waste without delay.

The Committee also urges that supporting documents be availed to the Office of the Auditor General for audit verification.

c. Accounting for Revenue - Failure to Collect Revenue.
Lease of Properties It was submitted that most tenants renting Council shops had challenges paying rentals due to effect of COVID-19 pandemic that affected their businesses.

202 The Council wrote eviction notices to all tenants that had outstanding balances and had since collected K46,500, leaving the balance of k9,600.

Bill Boards The Committee was informed that ZESCO Limited was pursued and had since cleared for all its bill boards.
Access Agreement The Committee was informed that this was due to non-operational mining companies that had expressed interest in the district.

 CURRENT STATUS Expected of amount Type revenue S/n Collected 3 Mining access Total 640,000 640,000 75,000 75,000 Current status Only two mining companies paid, rest were non- the operational Sale of Plots The Council had been engaging traditional leadership over planning agreement and several meetings had been held both at the Council and at the palace.
The Council had conducted Land audit on the affected land to ascertain any encroachments and a few residents had since paid for the plots.

CURRENT STATUS S/n 4 Type revenue of Expected amount Sale of plots Total 258,960 258,960 Collected 160,000 160,000 Current status K98,960 outstanding 98,960 still Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that all the amount owing is collected without fail.
The Committee will await a progress report on the matter.

d. Management of Assets i.

Failure to Secure Title Deeds It was submitted that the Council had no industrial differential GPS for surveying of Council properties.

The Council had written to Ministry of Lands to survey and number all Council properties for purposes of obtaining title deeds.

The Council had procured a GPS for survey of plots.
203 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the title deeds are acquired without delay.

The Committee will await a progress report on the matter.

ii.

Failure to Maintain Council Properties The Failure to maintain Council properties was due to inadequate resources for renovations of properties.
The Committee was informed that plumbing works had been done at Council lodge and toilets at the bus station awaiting audit verification Civic Centre roofing, Council houses and shops will.

be worked on in 2023.

Rehabilitation works at the Civic Centre were in progress.

There is a budget provision of K450,000 for the activity.

The LGSC had also sent a Building Inspector to assist Council with building inspections.
The Council management would endeavour to conduct regular inspections and maintenance of Council buildings shall be put as a priority.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that all the cited buildings yet to be maintained are addressed without delay.

The Committee also urges that the Council must put in a place a robust asset management policy, in order to permanently address the matter.

iii.
iii.

Failure to Claim Insurance The Committee was informed that the vehicle had been worked on and was being used by the Council Secretary’s office.

The Council would endeavour to pay premiums to the insurance company and make claims in time.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
e. Management of Local Government Equalisation Funds - Failure to Reimburse Borrowed Funds It was submitted that the failure to reimburse borrowed funds was due to inadequate LGEF to meet personal emoluments, Councillor’s monthly allowances and other operations.

204 The Council had been engaging the Ministry of Local Government and Rural Development on several occasions on the need to increase the funding.
The Council had since reimbursed K110,000 from local revenue and had committed K10,000 per month from local revenue towards the amount still outstanding.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to desist from the practice of using LGEF to meet operational costs and that the Council must seriously focus on locally generated revenues to meet the cost of other operational matters.

The Committee will await a progress report in the full repayment of the funds.
f. Land Management - Failure to Create Access Roads and Survey Diagrams It was submitted that the failure to create access roads and survey diagrams was due to lack of equipment and inadequate resources to repair old equipment.

The Council had allocated funds to repair the old grader under CDF for 2023.

The Council would always service the plots before advertising to the General Public.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that access roads are created without delay.

The Committee also urges that supporting documents be submitted to the office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

g. Management of Liabilities i.


Failure to Remit Statutory Obligations It was submitted that the failure to remit statutory obligations was due to inadequate LGEF to sustain personal emoluments and councillors monthly allowances; and the low revenue base and poor compliance by rates payers despite sensitisations.

The Central Government paid K2,496,073 towards ZRA arrears.

Council had committed K10,000 towards the arrears on monthly basis.
The Council had since paid NHIMA in full and had committed to be paying k10,000 towards the liquidation of LASF dues.

The Council paid current monthly obligations and K10,000 towards arrears as per agreement with NAPSA.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the outstanding statutory obligations are cleared without delay.

The Committee will await a progress report on the matter.
205 ii) Failure to Settle Staff Obligations It was submitted that the failure to settle staff obligations was due to inadequate LGEF to sustain personal emoluments.

The Council received more staff from LGSC on first appointment and transfer.

The status was as tabulated below.

The Council had since paid K164,173 towards settling in allowances and has committed k20,000 towards the same on a monthly basis.
The Council had cleared four retirees out of thirteen retirees last year and the outstanding balance on terminal benefits stood at K1,259,562.69 as of December 2022.

The Council had also committed K30,000 monthly towards terminal benefits, funds permitting.

The Council had also paid K127,452.14 towards salary arrears and still owed same historical salary arrears.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the outstanding staff obligations are cleared without delay.

The Committee will await a progress report on the matter.

Kasenengwa Town Council Paragraph 30.

Audit Findings An examination of financial and other records maintained at the Council for the Financial Year Ended 31st December, 2021 and a physical inspection of selected projects revealed the following.
Budget and Income a) During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K9,697,780 against which amounts totaling K9,494,259 were received and generated resulting in a negative variance of K203,521.

See table 1 below.
See table 1 below.

206 No.Staff ObligationAmount Kpaidcurrent status1Salary arears127,452.14 127,452.14 - 2Terminal benefits1,543,376.73 283,814.04 1,259,562.69 3Settling-in allowance295,977.31 164,173.00 131,804.31 Total1,966,806.18 575,439.18 1,391,367.00 Table 8: Budget and Income No.
Source of Funds Locally Generated Budget K Income K Variance K Local Taxes 6,000 5,108 (892) Fees and Charges 694,860 449,937 (244,923) Licences Levies Permits 8,850 12,255 3,405 286,000 212,643 (73,357 ) 46,550 51,887 5,337 Other Receipts 36,000 12,903 (23,097) Sub total National Support 1,078,260 744,733 ( 333,527 ) Local Government Equalisation Fund 7,019,520 6,999,526 (19,994) Constituency Development Fund 1,600,000 1,600,000 - Other Grants Sub total - 150,000 150,000 8,619,520 8,749,526 130,006 Total 9,697,780 9,494,259 ( 203,521 ) Management Response The Accounting Authority submitted that the Council did not collect 100 percent of the budgeted revenue due to various reasons set out below.
i.

The under collection of K892 was as a result of sixty employees whose personal levies were not paid due to downsizing of workers by business owners and the complete closure of others, arising from the effects of COVID-19 pandemic.

Local taxes Fees and charges ii.

The uncollected amount of K244,923 was premised on the anticipated completion of land registration, numbering and offer of plots, which was not finalised and the exercise was on going in 2022.

207 iii.
207 iii.

Licenses The K3,405 over collection was due to registration of more guns in the district as the Council had gun license books at the time when other surrounding councils did not.

iv.

Levies The under collection of K73,357, on levies was due to Council utility vehicle breakdowns and lack of information within the community on the need to pay Council dues.
Permits v. The over collection of K5,337 was due to continued sensitisation of clients on the need for payment of business permits as more sole trader businesses opened up in the district.

vi.

The Council received K130,006 more than was budgeted in the year as grant in lieu of rates.

National support Other receipts vii.

The under collection of K23,097 was because this vault was usually for unexpected revenue.

New sources of revenue not previously identified were captured under this vault.
The Committee was informed that the Council had collected K117,000 from applications and interview fees for land that was offered in 2022.

In order to increase revenue collection, the Council had introduced new collection points and engaged revenue agents.

The Council had also increased sensitisation and monitoring of the business community and was updating the database of all businesses operating within the District, in order to enhance collection of personal levy and other council dues.
The Council had also repaired a vehicle and had a Motorbike, which were exclusively attached to revenue office to ease the collection of revenue.

Committee’s Observations and Recommendations The Committee observes that the Council is not realistic when preparing a budget as a resulting it was difficult to meet its targets.
The Committee contends that the Council would have avoided including income generated from the sale of land in the budget since the registration and numbering processes had not been completed.

In view of this, the Committee urges the Accounting Authority to be proactive and ensure that the processes regarding the offer of plots are expedited without delay.
The Committee also urges the Accounting Authority to be consistent in the application of revenue collection measures to enhance the performance of all revenue streams.

b.

Environmental Management - Failure to Operate a Dumpsite The Accounting Authority acknowledged that the Council did not have an area designated as dumpsite, at the time of the audit.

The Committee was informed that the Council identified an area to be designated as a dumpsite but was not approved by the traditional leaders, in 2020.
However, a new site was identified in 208 2021, which the Council had secured and had the Local Area Plan prepared and beaconed.

Committee’s Observations and Recommendations The Committee expresses displeasure at the failure by the Council to operate a dumpsite at the time of the Audit.

The Committee wonders why the Council was not giving the matter the urgent attention it deserved to prevent the outbreak of diseases in the District.
In this regard, the Committee prods the Accounting Authority to be proactive and ensure the dumpsite is operationalised and managed without delay.

The Committee will await a progress report on the matter.

c. Accounting for Revenue The Accounting Authority submitted that the Council had not collected revenue from six mobile booth operators as they had lost business and had closed down.

The booths had been closed since 2020.


The Committee was informed that management took the matter to the Full Council meeting for authority to consider the debt as bad debt and delist the six operators.

The matter was approved under minute number SPFHGPC/10/12/22.

The mobile booth operators had not resumed operations since 2020.

Committee’s Observations and Recommendations The Committee resolves to close the matter subject to audit verification.

C. Management of Assets i.


Lack of Title Deeds The Accounting authority submitted that the Council had started the process of securing the title deeds for the various properties, through minute number PWDERNRC/64/02/22.

The Council had since applied to the Ministry of Lands and Natural resources for the processing of title deeds.
Committee’s Observations and Recommendations The Committee observes with concern that the Council had not acquired title deeds for some of its properties, exposing them to dangers of encroachments.

In this regard, the Committee urges the Accounting Authority to engage the Ministry of Lands and Natural Resources expedite the processing of title deeds without any further delay.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Maintain Properties The Accounting Authority submitted that the Council bar and two abandoned houses were being considered for demolition due to their poor and irreparable state.

The Committee was informed that the Council had received a report on the status of the abandoned houses and was in the process of engaging the Ministry of Infrastructure, Housing and Urban Development for a valuation report and authority for demolition which would further be considered by the Full Council.
209 It was also submitted that the Council was maintaining other properties not earmarked for demolition.

The Council had budgeted K235,000, in the 2023 budget, to go towards the maintenance of buildings.

Committee’s Observations and Recommendations The Committee bemoans the poor state of Council infrastructure and observes that the bar and the houses, if well maintained could serve as income earners for the Council.
In this regard, the Committee urges the Accounting Officer to ensure that construction works are commenced on the site to facelift the quality of the buildings, without any further delay.

The Committee will await a progress report on the Matter.
d. Management of Constituency Development Fund  Uncollected Building Materials - Staff House at Mtenguleni (Rural Health Post) The Accounting Authority submitted that the Council had not yet collected other building materials for a staff house at Mtenguleni, as the stage at which the materials were required had not been reached and the works were in progress.
The Committee was informed that the Council did not have storage space and had asked the supplier to keep the materials until such a time when needed.

The advance payment was made to avoid the cost of material price fluctuations.

The Committee was also informed that the contractor was on site and when appropriate stages were reached, the materials shall be collected to complete the project.

The project was 70 percent complete.


Committee’s Observations and Recommendations The Committee finds it irregular and unacceptable that the Council is unable to store the materials procured for the construction of staff house.

The Committee also finds it unfortunate that the Council proceeded to pay for the materials which it was unable to collect, making verification difficult.
In this regard, the Committee urges the Accounting Authority to put measures in place which will enhance the management of stores at the Council.

The Committee also cautions the Accounting Authority to desist from violating financial and procurement regulations, in the management of CDF, without exception.

The Committee will await a progress report on the matter.
• Delayed Completion of a 1 x 2 Classroom Block at Mtachi Primary School The Accounting Authority submitted that the Council delayed in the completion of a 1 by 2 Classroom block due to lack of community contribution of materials such as sand, stones and moulding of bricks.

210 The Committee was informed that community contribution had been mobilised and the project was at plastering level and would be completed in 2023.
Committee’s Observations and Recommendations The Committee bemoans the delay in the completion of construction works of a classroom block, thereby denying learners access to quality education.

In this regard, the Committee prods the Accounting Authority to prioritise the completion of the project and put measures in place that will enhance project management at the Council, without delay.

The Committee will await a progress report on the matter.
 Delayed Completion of 1x3 Classroom Block at Mandondo Primary School The Accounting Authority submitted that K250,000 had been approved, out of the 2022 CDF funds, to complete the construction works of the project.

The contractor was on site and was scheduled to complete the construction works in 2023.

Committee’s Observations and Recommendations The Committee bemoans the delayed completion of the project and poor management of the contract.
In this regard, the Committee urges the Accounting Officer to ensure that the project is completed without any further delay.

The Committee also urges the Accounting Authority to put measures in place that will enhance the contract management systems at the Council.

The Committee will await a progress report on the matter.
 Failure to Operationalise a Staff House at Shamombo Health Post The Accounting Authority submitted that the project was completed but had not yet been occupied due to lack of water facilities.

The Committee was informed that the Council had since drilled a borehole using the 2021 CDF funding.

The completed project would be handed over to the district health office.
Committee’s Observations and Recommendations The Committee observes with concern that the Accounting Authority was reacting to the audit process when completing the cited project.

The Committee contends that the pending works could have been completed before the audit process.

In this regard, the Committee urges the Accounting Authority to be proactive and ensure that that the project is handed over without any further delay.

The Committee resolves to close the matter subject to audit verification.
Kitwe City Council Paragraph 31 Audit Findings a.

Budget and Income 211 During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K193,647,824 against which amounts totaling K158,832,506 were received and generated resulting in a negative variance of K34,815,318.

See table 1 below.
See table 1 below.

Table 1: Budget and Income Management Response Local Taxes It was submitted that the under collection on local taxes was because of the non-payment of property rates mainly by the two major mining companies namely; Konkola Copper Mines (KCM) and Mopani Copper Mines.

Property rates from Commercial, Industrial, Residential and other properties performed at more than 90 percent in the year under review.
KCM was in liquidation and could not pay its outstanding property rates of K11.8 million whilst Mopani Copper Mines was also undergoing changes in its shareholding structure from the private foreign investor into Government ownership and could also not pay its K65 million outstanding rates despite several demand notices and reminders by the Council.

The two mines make up 70 percent of the Council’s property rates budget and about 45 percent of the entire locally generated Council revenue budget.
Levies The under collection on levies was because of the most small scale businesses that had closed due to the COVID - 19 effects in the year 2020 and 2021. Business Levies mainly from small 212 Source of Funds Budget (K)Actual (K)Variance (K) Local taxes106,211,511 50,033,283 (56,178,228) Fees and Charges34,974,763 53,615,172 18,640,409 Licences666,666 1,165,666 499,000 Levies5,781,849 2,734,090 (3,047,759) Permits9,120,000 11,401,812 2,281,812 Other Receipts610,000 911,721 301,721 Sub Total Locally Generated157,364,789 119,861,744 (37,503,045) Local Government Equalisation Fund28,283,035 28,658,695 375,660 Constituency Development Fund8,000,000 8,000,000 - Other Grants- 2,312,068 2,312,068 Sub Total National Funding36,283,035 38,970,763 2,687,728 Total193,647,824 158,832,506 (34,815,318) scale businesses were a major source of revenue from this category.
Fees and Charges, Licenses, Permits and Other Receipts The positive variance on fees and charges, licenses, permits and other receipts was as a result of effective monitoring of collections through formulation of Revenue Task Force, automation of most revenue mobilisation systems such as e – billing, direct deposits by clients and opening of pay-points in various site offices within the district to easy proximity and payments by clients.
The Accounting Authority submitted that the Council had taken action as set out below.

Local Taxes The Council had entered into a tripartite debt swap arrangement which was among Mopani Copper Mines, Kitwe City Council and Zambia Revenue Authority (ZRA), proposed by Mopani Copper Mines for the liquidation of its 2021 property rates arrears of K65 million against the outstanding Pay As You Earn (PAYE), Council debt to ZRA, in exchange of the outstanding VAT refunds which ZRA owed Mopani.
The swap arrangement was yet to be concluded.

The Council also signed, in 2023, the MoU on the payment of the 2021 arrears by KCM.

Levies The Council had removed all the closed small-scale businesses from its business levies clientele database and had scaled down the budget for levies beginning 2022 financial year.

Council had enhanced collection of levies from this source since 2022.
Fees and Charges, Licenses, Permits and Other Receipts The Council had enhanced its revenue task force for effective collection of fees and charges.

Revenue mobilisation systems had been automated and two utility vehicles had been budgeted in the 2023 budget to facilitate revenue mobilisation.

The Council would ensure that only attainable revenue streams were put in the budget going forward.

Council would also ensure that it entered into debt swaps with institutions it owed money.
Resources had been allocated in the 2023 Budget, specifically under the Revenue Mobilisation Programme to enhance budget performance.

Committee’s Observations and Recommendations The Committee observes with concern that the Accounting Authority was taking action after the audit process.

In this regard, the Committee urges the Accounting Authority to be proactive and desist from the practice and ensure that all revenue measures are actualised without any further delay.
The Committee will await a progress report on the matter.

b.

Operations i.

Failure to Install and Maintain Street Lights The Accounting Authority submitted that the Council could not maintain all its budgeted street lights due to lack of adequate finances in the year under review.
The increase in the illegal scrap metal dealers in the city was also posing a great security risk to the street lights infrastructure as 213 most of the infrastructure was being stolen by members of the community during night time and sold to scrap metal dealers.

Road traffic accidents had also affected a number of street lights infrastructure within the city.
The Council had since installed a total number of fifty new poles of solar streetlights and had also maintained street lights along five streets at the cost of K722,500 as indicated in the table below: Street Name Serial No Total Number of Street lighting poles Total Distance maintained (m) Kingston Road Chisokone Matuka Avenues Central Street Boma Street 11th Street – Nkana West Unity Way – Jambo Drive Kuomboka Rd – Off Hospital Road TOTALS 13 25 12 50 3,000 1,300 950 500 2,800 8,550 Furthermore, Council had started claiming damages from the insurance companies for streetlights that were damaged by motorists through road traffic accidents.
The Council would ensure that allocation in the budget for the maintenance of streetlights was provided annually.

Collaboration between Council and Zambia Police would be enhanced to regulate scrap metal dealers and secure street lights infrastructure.

The Council would continue to claim compensation from insurance companies for damaged street lights infrastructure by motorists involved in road traffic accidents.
Committee’s Observations and Recommendations The Committee bemoans the vandalism to public infrastructure and urges the Accounting Authority to be proactive and put in place security and other measures in place to prevent this vice which has lead to the wastage of public resources.

The Committee also expresses concern and observes that the Accounting Authority was reacting to the audit process.
In this regard, the Committee urges the Accounting Authority to be proactive and ensure that all the stipulated measures are put in place without delay.

The Committee will await a progress report on the matter.

ii It was submitted that at the time of the audit, most of the road equipment for the Council had broken down and needed more than K1 million to service and repair the equipment.
Failure to Maintain Roads – Chingola Road Cemetery The equipment had since been serviced and repaired and all the access roads in Chingola cemetery and other critical areas within the city had been worked on.

The graded roads were ready for inspection.

214 The Council had set aside funds in the 2023 budget for the maintenance of roads in all the cemeteries and other critical roads within the district.
Furthermore, the Council would apply for procurement of additional road equipment from the five constituencies under the 2023 constituency development fund (CDF) to improve on its road machinery fleet.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and avail supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Failure to Control Street Vending iii It was submitted that the Council lacked adequate Council police officers to regularly carry out patrols to enforce against street vending in the central business area and streets adjacent to Chisokone Market.

The Council had obtained authority to employ some council police officers who would be assigned among other duties to enforce against street vending in the cited and other areas.
The Council had been engaging key stakeholders, including representatives of the vendors and marketeers to ensure that all vendors went back to designated markets.

Construction of market shelters in Chisokone, Nakadoli and other markets was underway to guarantee adequate space for all the street vendors who were being taken back into the markets.
The Council would continue to enforce against street vending and to construct more market shelters at Chisokone and other Markets to accommodate street vendors as and when they arose.

The Council would also continue to engage street vendors representatives to ensure that their members returned to designated markets without further delays.

Committee’s Observations and Recommendations The Committee expresses concern and observes that the Accounting Authority was reacting to the audit process.
In this regard, the Committee urges the Accounting Authority to be proactive and ensure that all the stipulated measures are put in place without fail.

The Committee will await a progress report on the matter.

c. i Weaknesses in management of Revenue - Failure to Collect Revenue Failure to Collect License Fees Liquor License It was submitted that the liquor licensing Act, No.

20 of 2011 gave a validity period of three years for the liquor license to expire once renewed.
Therefore, the 413 bar owners who renewed their liquor licenses in the year 2020 could not renew their licenses in 2021 as they were still valid.

215 Health Permits, Retail and Wholesale Licenses (Business Levies) The Council did not collect business levies due to the closure of businesses operating in this category in the year under review.

Most of the businesses operating in this category (except for the wholesalers) were small-scale in nature and were greatly affected by the COVID-19 pandemic.
It was submitted that the Council had taken action set out below.

Liquor License The owners of the bars cited had been verbally reminded during routine inspections to renew their Liquor Licenses before the end of this year as per the requirement of Liquor Licensing Act.
Health Permits, Retail and Wholesale Licenses (Business Levies) Out of the total of 2,516 business owners who did not renew their Health Permits, Retail and Wholesale Licenses (Business Levies) in the year 2021, a total of 288 businesses who were still in operation renewed their permits in the year 2022 and a total of K619,007.30 was collected by the Council.

A total of 2,228 businesses were closed and non-operational.
The Council had removed the cited Retail and Wholesale businesses from its business levies clientele database because most of them had been closed and not operational.

The 2023 budget provision for business levies had been scaled down accordingly.
The Council would ensure that the created automated clientele databases for liquor licenses, permits, and business levies were frequently updated and inspections were carried out by the respective Officers to make sure that all business premises that were operational renewed their licenses, permits, and business levies and that only realistic figures were budgeted under health permits and business levy budget lines.
Committee’s Observations and Recommendations The Committee expresses concern and observes that the Accounting Authority was reacting to the audit process.

In this regard, the Committee urges the Accounting Authority to be proactive and ensure that all the stipulated measures are put in place without fail.

The Committee will await a progress report on the matter.
ii Failure to Collect Tipping Fees It was submitted that the cited four Companies did not comply with paying of tipping fees/franchise fees despite several reminders and demand notices given to them by the Council.

The Council had since collected a total of K28,550, leaving a balance of K113,700.
The status of the outstanding tipping fees/franchise fees was as shown in the table below: 216 Serial No Company Name 01 Rojo Management Systems Environmental Outstanding Amount (K) 10,350 02 Lembi Protective System 47,300 03 Citimop Limited 6,400 04 Cee Gee’s Sanitation 81,350 Status the Paid K10,350 on receipts No.

1151713 and 1169618 leaving Nil balance The had client committed to pay the outstanding amount by end of April 2023 Paid K3,200 on receipt No.
11214214 and remaining balance was K3,200 The Client had paid a total of K15,000 (receipt No 22936107 – K5,000 and receipt - 22844128 No K10,000) leaving the balance of K66,350.

had The client to settle committed six balance in installments not exceeding 30th June, 2023 The Council would ensure that all provisions of the contracts with franchise companies engaged in waste collections were enforced and actions shall be promptly taken whenever a breach of any provision occurred.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to consider terminating the contracts of franchise companies who were in violation of the contract agreement, without delay.

The Committee will await a progress report on the matter.

d. Management of Payroll and Other Staff-Related Matters i.

Over Employment of Staff It was submitted that the establishment register for the Council was not updated at the time of the audit.
The establishment register had since been updated and all the 133 cited positions had been absorbed in the updated register.

The updated register still had a number of vacant positions that needed to be filled and these vacancies had since been reported to the Local Government Service 217 Commission for filling.

Council would continue to update the staff register and would ensure that only key vacant positions were provided for in the budget and filled.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Employees without Requisite Qualifications ii It was submitted that the eighty-eight officers cited to be under-qualified had not yet submitted their latest acquired qualifications to Human Resources for an update of their personal files.
Therefore, their files were not updated at the time of the audit.

The staff files had since been updated, with twenty-three officers already upgraded the qualifications, ten officers were pursuing studies, five officers had retired, two officers were pending retirement, one officer was deceased, while the remaining forty-seven officers had not submitted the minimum required qualifications for the positions held.
The Council would continue encouraging members of staff to upgrade their qualifications and submit copies of their qualifications upon completion of studies to update their files.

Committee’s Observations and Recommendations The Committee bemoans the Laissez Faire attitude adopted by the Accounting Authority of the updating of employees files and urges that measures are put in place to enhance the internal controls with regard to human resources matters.
The Committee further urges that those officers not willing to upgrade their qualifications are regarded accordingly.

The Committee will await a progress report on the matter.

e. i.
e. i.

Management of Constituency Development Fund (CDF) Implementation of Empowerment Projects Wasteful Expenditure Chimfya Clay Multipurpose - Procurement of a hammer mill and accessories The Council had commenced litigation process against the corporative in order to recover the funds disbursed for the purpose of procuring of a hammer mill and accessories which had not commenced despite several reminders and guidance by the monitoring team to start implementing the project.
Young Farmers Club - Procurement of a block-making machine The Council had commenced litigation process against the club in order to recover the funds disbursed for the purpose of procuring a block-making machine project that had not commenced despite several reminders and guidance by the monitoring team to start implementing the 218 projects.
Buchi Kamitondo persons with Disability clay multipurpose cooperative – Procurement of a hammer mill and accessories The Council had commenced litigation process against the corporative in order to recover the funds disbursed for the purpose of procuring of a hammer mill and accessories which had not commenced despite several reminders and guidance by the monitoring team to start implementing the project.
The Council would continue to appraise, sensitise, train and monitor the cooperatives/clubs funded under the Constituency Development Fund (CDF) to ensure that they implemented the funded projects without delays to enhance socio-economic development in the district.

Committee’s Observations and Recommendations The Committee bemoans the wastage of public resources and urges the Accounting Authority to ensure that due diligence is undertaken before awarding empowerment funds to would be beneficiaries.
The Committee will await a progress report of the outcome of the litigation process.

• Unaccounted for Funds Young Advocates Cooperates – Chicken Rearing The Council had commenced litigation process against the corporative in order to recover funds disbursed for rearing of chickens that had not commenced despite several reminders and guidance by the monitoring team to start implementing the project.
Chimfya Clay Multipurpose - Procurement of poultry farming accessories The cooperative had procured the required poultry accessories and had since commenced the poultry farming project.

The project was ready for inspection and the monitoring report available for verification.

Chimfya Clay Multipurpose - Procurement of an incubator and accessories The cooperative had procured the incubator and accessories and had started using the incubator.
The project was ready for inspection and the monitoring report available for verification.

Strong Ties Multipurpose - Procurement of a block-making machine The Council had commenced litigation process against the corporative in order to recover the funds disbursed for the purpose of procuring a block-making machine project that had not commenced despite several reminders and guidance by the monitoring team to start implementing the projects.
The Council would continue to appraise, sensitise, train and monitor the cooperatives/clubs funded under the Constituency Development Fund (CDF) to ensure that they implemented the 219 funded projects without delay to enhance the socio-economic development in the district.

Committee’s Observations and Recommendations The Committee bemoans the wastage of public resources and urges the Accounting Authority to ensure that due diligence is undertaken before awarding empowerment funds to would be beneficiaries.
The Committee also urges the Accounting Authority to ensure that the implementation of the already procured projects is monitored.

The Committee will await a progress report of the outcome of the litigation process.

f. Management of Assets Failure to Maintain KMB Mechanical Workshop i.

The Council did not have adequate resources to rehabilitate the buildings in the year under review.

Therefore, KMB mechanical workshop was not rehabilitated.
The Council had budgeted for a phased rehabilitation of KMB mechanical workshop at an amount of K1,747,200, in the 2023 budget.

The Council shall endeavor to collect enough revenue in the year 2023 in order to support maintenance of dilapidated assets.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that the mechanical workshop must be rehabilitated without delay.
The Committee will await a progress report on the matter.

ii.

Bamboo Building Workshop The Council had some financial challenges in the year under review and therefore, could not manage to rehabilitate the Bamboo Building workshop.

The Council had budgeted for a phased rehabilitation of the workshop at an amount of K1,310,400 in the 2023 budget.

The Council would endeavor to collect enough revenue in the year 2023 in order to support maintenance of the dilapidated assets.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that the mechanical workshop must be rehabilitated without delay.

The Committee will await a progress report on the matter.

iii.

Buchi Hotel The Council did not rehabilitate the hotel in the year under review due to lack of adequate funds.
The hotel required a huge capital injection in order to bring it to the minimum required standard.

The Council was in the process of finding an equity partner to rehabilitate/construct and lease the hotel for a period of not more than fourteen years in accordance with section 23(3) of the Local 220 Government Act, No.

2 of 2019.

The Council would ensure that it collected enough revenue in the year 2023 in order to implement the maintenance of the dilapidated assets.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that the Hotel is rehabilitated without delay.

The Committee will await a progress report on the matter.

Chisokone Fish Market iv.

It was submitted that the construction of Chisokone Fish market shelter was a phased construction which started in the year 2020.
At the time of the audit, only phase one consisting of a market shelter was completed.

Phase two which consisted of concrete/floor, market stands and other auxiliary works were to commence in 2022/2023 financial years.

The Council had set aside funds to do the concrete floor and other auxiliary works (second phase) in the year 2023, using the Local Government Equalisation Fund capital component.
The Council would ensure that all capital projects were budgeted, scoped and executed to completion within the same financial year.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that the fish market be improved upon by putting up a concrete surface and drainage, to enhance hygiene and prevent outbreak of diseases.
The Committee will await a progress report on the matter.

g. Management of Liabilities – Failure to Remit Statutory Obligations It was submitted that due to financial challenges faced in the financial year of 2021, Council did not manage to clear all its statutory obligations as it focused on clearing other staff debts such as retirees and deceased benefits, long service bonus, settling in allowances, gratuities and accrued leave days which were dating as far back as 2011.
Having cleared other staff debt, the Council was focused on clearing the two (NAPSA and LASF) historic statutory obligations.
The Council had since paid a total of K425,505 and debt swapped K1,749,715 towards outstanding statutory obligations as shown on the table below: 221 S/No.institutionBalance as at 31.12.21 KPayments KBalance as at 31.12.22 K1NAPSA6,332,955 1,749,715 4,583,240 2LASF27,454,326 425,505 27,028,821 33,787,281 2,175,220 31,612,061 Furthermore, the Council had an arrangement to debt swap rates of K1.8million annually for ECL mall and other properties belonging to NAPSA to go towards the settlement of the outstanding worker’s contribution arrears.
The Ministry of Local Government and Rural Development had started deducting monthly LASF contributions from the Council’s Equalisation grant, at source in order to avoid accumulation of LASF workers ‘contributions.

The Council had started paying its wage bill at gross amount with effect from 2021 to avoid further accumulation of statutory obligation arrears.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that the outstanding statutory obligations must be paid without delay.

The Committee will await a progress report on the matter.

Livingstone City Council Paragraph 32 a.


Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K67,322,340 against which amounts totaling K58,985,801 were received and generated resulting in a negative variance of K8,336,539.

See table 1 below: No.
Source of Revenue Locally Generated 1 Local Taxes 2 Fees and Charges 3 Licences 4 Levies 5 Permits 6 Other receipts Sub Total National Support Budget K Income K Variance K 31,774,288 19,698,199 (12,076,089) 10,331,973 6,416,477 869,063 4,839,887 1,987,129 168,000 49,970,340 (3,915,496) (313,418) 555,645 (274,867) 4,565,020 3,592,758 1,605,629 7,036,246 6,868,246.00 41,864,345 (8,105,995) Government Local Equalisation Fund 7 8 Constituency Development Fund 15,752,000 14,949,456 (802,544) 1,600,000 1,600,000 - 9 Grants in Lieu of Rates - Sub Total 17,352,000 572,000 17,121,456 572,000 (230,544) 222 Total 67,322,340 58,985,801 (8,336,539) In addition, funds amounting to K3,811,013 were brought forward from the previous year bringing the total funds available to K62,829,814 during the period under review.
As at 31st December 2021 amounts totaling K58,077,634 had been spent leaving a balance of K4,752,180.
Management Response Local Taxes It was submitted that the under collection of property rates amounting to K12,076,089 was due to the fact that credible leaseholders such as Zambia Airports Cooperation, AVANI Hotels, Protea Hotels, Chrismar Hotel, David Livingstone Safari Hotel and Bukhan Brothers were unable to settle their balances owed to Council by the end of 31st December, 2021, on property rates, due to the negative effects of COVID-19 pandemic.
However, the Council included in the 2022 budget, the previous balance of K12,076,089, in the 2022 billing for the first half of the year in order for the outstanding balance to be collected in full.

It was also submitted that the Council managed to collect the total sum of K7,138,407.81 from the previous balances, which was included in the bills for the first half of the year 2022.

Therefore, adverse balance of K12,076,089 was reduced to K4,937,681.19.
The Council also engaged the leaseholders to sign up the payment plans, issue demand notices and some warrants of distresses in order to recover the outstanding arrears on property rates.

The Committee was informed that the Council had taken measures set out below.

i.

The Council would ensure that bills and demand notices were issued in time and legal enforcements like warrants of distress were regularly executed on none compliant clients.
Formation of task force teams to make timely follow-ups on revenue streams that were not performing well.

ii.

iii.

Continued sensitisation of the public on the need to pay taxes to the Council and the availability of the payment plan facility for some taxes such as property rates and rentals arrears, that the Council was offering.

Providing additional payment platforms to enable customers pay their bills using their phones.

iv.
iv.

Fees and Charges The Council managed to collect K6,416,477 from the fees and charges against the budgeted amount of K10,331,973 which represented total collection efficiency of 62 per cent.

The adverse variance of 38 per cent with an amount of K3,915,496 was attributed to delay in the opening of the new modern market and bus terminus as such the Council could not collect the market and loading fees from the two facilities.
The Modern Market and the Bus Terminus stood opened as at 1st February, 2023 and it’s hoped that the opening of City Market and Bus Terminus would help increase revenue under fees and 223 charges.

The Council would ensure that all revenues in form of fees and charges were collected on time.

Licenses The Council managed to collect K555,645 from license fees against the budgeted amount of K869,063 which represented the total collection efficiency of 64 per cent.
The adverse variance of 36 per cent with an amount of K313,418 was due to non-collection of liquor licenses because of closure of business due to the effect of COVID-19.

Further, the Council did not have a reliable data base to use for budgeting purposes.

The Council managed to collect a total sum of K165,586 from the non-compliant (defaulters) customers with the inclusion of charging them with penalties.
Therefore, the adverse variance of K313,418 was reduced by a total sum of K165,586, leaving the total outstanding balance of K147,832.

The Council had developed a comprehensive data base on liquor licences that would enable the Council budget accurately.

The Committee was informed that the Council had taken measures set out below.

i. ii.

iii.

The Council would ensure that all the bars in operation were licenced.

The Council would maintain and keep updated data base on bars.
The Council would only budget for bars whose licences would be expiring in the budget period that would be required to renew their licences as opposed to the total number of bars operating in the district since liquor licenses were effective for three years.

National Support The variance of K230,544.10 was as a result of deduction at source, in respect of the remittance of Statutory Obligations.
The Council would continue engaging the Ministry of Local Government and Rural Development in relation to National support.

Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to meet its revenue collection projections, during the period under review.

The Committee, therefore, urges the Accounting Authority to be proactive and ensure that the Council does not overstate its budget, at preparation stage.
The Committee also urges the Accounting Authority to submit supporting documents on this matter to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

(b) Operational Matters i.

Environmental Management Management of Solid Waste at the Livingstone Dumpsite.

 The Council did not compact or cover the waste with a layer of soil, however, waste was being burnt thereby exposing the community to health hazards.
224  The dumpsite was not fenced for protection and from access by unauthorized persons.

See pictures below.

It was submitted that the dump sat on land belonging to Zambia Airports Corporation and was being used for waste disposal on a temporal basis.

It was the wish of the Council to ensure that all facilities were provided at a permanent waste disposal facility.

To come up with an engineered landfill, required a comparatively high capital investment.
The provisional engineer’s estimates stood at K42,700,000 which was beyond the capacity of the Local Authority to fund.

The Council was implementing a recycling facility project at a total cost of K9,000,000.

The project was funded by United Nation Industrial Development Organisation (UNIDO).

The Recycling project would lessen the burden of running the existing dumpsite.
The Council had also embarked on activities to discourage scavengers from accessing the dumpsite such as weekly land filling of solid waste, creation of cells/tipping area for disposal of waste to discourage scavengers and installation of a billboard at the entrance to sensitise and warn the general public regarding environmental hazards at the dumpsite and ensure daily availability of a Council employee to monitor activities at the dumpsite.
Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to designate a dumpsite.

The Committee also observes with concern that the said temporal dumpsite was not secured and waste uncovered, contrary to the Environmental Management (Licensing) Regulations Statutory Instrument No.

112 of 2013.

In this regard the Committee urges the Accounting Authority to be proactive and ensure that a dumpsite is designated without delay.
The Committee will await a progress report on the matter.

• Lack of Receptacles and Failure to Collect Waste at Libuyu and Ellen Brittel Markets It was submitted that the constrained cash flow during the period under review was the cause for not having the two markets serviced, out of the twenty markets.
The Committee was informed that the Council had put the following measures in place: i. the Council secured five receptacle facilities from the Ministry of Local Government and Rural Development and had since placed them at Libuyu and Ellein brittel Markets.
In the 2023 budget, the Council had provided to procure ten more for the markets and bus stations; the Council had rehabilitated a refuse truck which was out of service for a long time to ensure that all markets were regularly serviced; and the Council had budgeted for a tipper truck in its 2023 budget and once procured would assist in bulk collection of solid waste.

ii.

iii.

Management would ensure that all markets were equipped with skip bin facilities.
Management would ensure that Solid Waste was collected regularly as planned.

Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to provide receptacles at the 225 markets.

In this regard the Committee urges the Accounting Authority to be proactive and ensure that receptacles are availed timely at the two cited markets without delay.

The Committee will await a progress report on the matter.

i. ii.
i. ii.

Lack of Fire Fighting Services The department had three (3) fire tenders out of which only one (1) was functional.

It was submitted that constrained cash flow during the period under review affected plans of implementing 2021 maintenance plan for fire Brigade station.

The Council had provisions in the 2023 budget for repair, rehabilitation, servicing and procurement of fire fighting and rescue services equipment.

The Council had serviced all the fire extinguishers and procured fire Horses.
Several follow ups had been made, on the Fire tenders that were in the garage with CLA Commercial services, a company recommended by the suppliers of the said fire tenders through the Ministry Of Local Government and Rural Development to service them, but the company’s main challenge had been securing spare parts which were not locally found in Zambia.
The Council would ensure that yearly budgetary allocations were provided for maintenance, repair and servicing of fire-fighting equipment to ensure that they were periodically maintained.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the fire service section is better equipped with all relevant firefighting.

The Committee will await a progress report on the matter.

Accounting for Revenue i.
Failure to Collect Revenue Property Rates It was submitted that the under collection of property rates amounting to K2,218,203 was due to the fact that credible leaseholders such as National Airports, Protea Hotels, Chrismar Hotel, David Livingstone Safari Hotel and Bukhan Brothers were unable to settle their balances owed to Council by the end of 31st December, 2021 on property rates due to the challenges of COVID- 19 pandemic .However, Council included in the 2022 budget the previous balance of K2,218,203 in the 2022 billing for the first half of the year in order for the outstanding balance to be collected in full.
It was also submitted that the Council managed to collect the total sum of K2,218,203 from the previous balances which was included in the bills for the first half of the year 2022.

The Committee was informed that the Council had taken measures set out below.

i. the Council would ensure that bills and demand notices were issued in time and legal enforcements like warrants of distress were regularly executed on none compliant clients.

226 ii.

iii.
226 ii.

iii.

continued sensitisation of the public on the need to pay taxes to the Council and the availability of the payment plan facility for some taxes such as property rates and rentals arrears, that the Council was offering.

providing additional payment platforms to enable customers pay their bills using their phones.

Rental The query was caused by tenants not meeting their obligations to pay rent on time.

The uncollected amount from rentals became accrued during COVID-19 period.
The Council managed to collect a total sum of K271,638.80 from the outstanding balance of K333,406 leaving the balance of K61,767.20.

The Council had entered into payment plans with the tenants.

The Council would ensure that rental income was collected on time and necessary enforcements were done in good time, on defaulting tenants.

Billboards The uncollected amount from billboards became accrued during COVID-19 pandemic period.
The Council wrote to ZESCO which was owing substantial amount of K452,000, reminding them to settle the outstanding arrears.

Further demand notices had been issued to other defaulters.

The Council would ensure that Billboards income was collected on time and necessary enforcements were done in good time on defaulting billboard owners.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to Collect Revenue- Mukuni Park Curio Shops ii.

It was submitted that the uncollected amount from Mukuni Park Association was accrued during the peak period of COVID-19 pandemic outbreak.

In May 2022, the association appealed to the Council to have the bill accrued during COVID-19 period, written off.
The Council terminated the contract with Market Association and entered into new contracts with individual members of the market to ensure that rental income was collected on time.

Further, Council recommended writing off the market association’s bill, to the Secretary to the Treasury.

The response from the Secretary to the Treasury was communicated to the Council and the Council deferred the matter to the 27th March, 2023 meeting for further consideration.
The Council would ensure that rental income was collected on time and appropriate enforcements were carried out on defaulting tenants.

227 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the outcome of the meeting concerning the debt write off.

c. Management of Payroll and Other Staff Related Matters i.

Failure to Fill Vacant Positions It was submitted that Livingstone City Council informed the Local Government Service Commission whenever there was a vacancy, as it was mandated to recruit and deploy officers in the local authorities.
The Council wrote to the Local Government Service Commission on the pending vacancies and the Service Commission had since brought in the Head of Procurement and Senior Valuation Officer.

The Committee was informed that the Council had taken measures set out below.

i.

The Council would swiftly fill up vacant positions through Human Resource Management Committee as delegated by the Service Commission.
The Council would endeavour to swiftly inform the Local Government Service Commission to fill up positions which did not fall under the jurisdiction of the Human Resource Management Committee.

ii.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Over Employment of Staff It was submitted that the mandate to employ and deploy was vested in the Local Government Service Commission.

The Council only received staffs that were deployed to it.

The Council wrote to the Local Government Service Commission on the excess positions.

The Council would swiftly inform the Local Government Service Commission whenever there was excess staff.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
228 Irregular Payment of a Salary It was submitted that the cause of the query was the delay by the Service Commission to redeploy one of the two Town Clerks to another Council.

The Council wrote to the Local Government Service Commission on the excess position.

The Council would swiftly inform the Local Government Service Commission whenever there was excess staff.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges that the irregularly paid allowances be recovered without delay.

The Committee also urges the Accounting Authority to submit supporting document to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Employment of Casual Workers It was submitted that the query was as a result of an error in the contract which indicated casual workers instead of contractual workers.

The Council corrected the mistake in the contract form which was reading as “two years contract as a casual worker” instead of ‘’contractual worker’’.

Further the Council deducted NAPSA for its contractual workers.

The Council would ensure that, it adhered to the Provisions of the Employment Act, No.

3 of 2019.
3 of 2019.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Employees without Requisite Qualifications It was submitted that Livingstone City Council had had the affected officers occupying the positions for a long time.

This was because at the time of engagement what they had were the requisite qualifications for the positions.

The affected officers had been engaged to upgrade their qualifications and some were upgrading their qualifications, while other officers were about to retire.

The Council would ensure that employment of staff was done on merit.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that officer not willing to further their qualifications are regarded without delay.

The Committee urges that supporting documents must 229 be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Management of Stores i. Unauthorised Fuel Drawings It was submitted that the nineteen vehicles were part of the Council utility vehicles appearing on the council fleet vehicles, while the other two were Mayoral vehicle and ZAF vehicle, used by the Brass Band invited to the swearing in ceremony of the Mayor, bringing the total number of vehicles to twenty-one cited by the auditors.
Correct Position of motor vehicles and fuel drawings SN Date Refere nce Details Product Litres Price (K) Amount (K) Management Comment 22/03/2021 3425 31/07/2021 469 26/07/2021 1947 30/07/2021 228 02/12/2021 5371 09/08/2021 421 06/08/2021 232 27/12/2021 5290 02/12/2021 5378 10 17/11/2021 6500 11 16/03/2021 3582 12 27/05/2021 5233 13 09/06/2021 5243 14 09/04/2021 4786 ABEL ADD 1091 ADD 5641 ADD 5641 BAD 7192 BAF 9408 BAP 2788 BAR 8016 BCC 2830 BCC 2834 BIG 5154 Chain Saw Chain Saw CHAIN SAW DIESEL 30 15.59 467.70 DIESEL 70 15.59 1,091.30 DIESEL 70 15.59 1,091.30 DIESEL 70 15.59 1,091.30 DIESEL 40 15.59 623.60 DIESEL 50 15.59 779.50 DIESEL 40 PETRO L 30 15.59 623.60 20.15 604.50 DIESEL 20 15.59 311.80 DIESEL 10 15.59 155.90 DIESEL 30 15.59 467.70 DIESEL 20 PETRO L 10 17.62 352.40 17.62 176.20 DIESEL 5 17.62 88.10 230 Council driver (BAK 8016 Hearse service funeral vehicle) GRZ (National Events) ACZ 5641 Council vehicle capture as ADD 5641 ACZ 5641 Council vehicle capture as ADD 5641 BAD 7182 Council vehicle capture as BAD 7192 BAF 9462 Council vehicle capture as BAF 9408 GRZ (National Events) BAK 8016 Council vehicle capture as BAR 8016 BCC 2836 council vehicle capture as BCC 2830 BCC 2836 council vehicle capture as BCC 2834 BAG 5145 council vehicle capture as BIG 5154 Council machine(council duties) Council machine(council duties) Council machine(council duties) 15 20/03/2021 3596 CHIGO NKE PETRO L 15 17.62 264.30 16 23/09/2021 5026 17 16/03/2021 3573 18 26/07/2021 213 19 26/07/2021 1949 20 31/05/2021 5271 21 03/09/2021 3223 22 24/08/2021 2421 23 15/03/2021 3568 24 10/05/2021 5312 25 07/07/2021 1476 80 DIESEL 40 DIESEL 20 DIESEL 50 PETRO L Chigonk e EVANS C GILBE RT GRZ 2977 GRZ 3211 GRZ 501 CF DIESEL 30 GRZ 986 CK DIESEL 40 K STEPH EN DIESEL 40 DIESEL 20 PETRO L 40 SHABA SICHIN GA 17.62 1,409.60 15.59 311.80 15.59 623.60 15.59 779.50 15.59 623.60 15.59 467.70 15.59 623.60 15.59 311.80 17.62 704.80 DIESEL 30 15.59 467.77 26 23/09/2021 5027 ZAF DIESEL 20 15.59 311.80 Total 920 14,824.77 Driver(council Council Driver(preparatory activities for swearing in ceremony Council driver used during installation ceremony for the mayor Council activities) Council activities) GRZ EVENTS) GRZ 3411 council vehicle capture as GRZ 3211 GRZ EVENTS) GRZ EVENTS) Driver(council (NATIONAL (NATIONAL (NATIONAL Driver(council Driver(council Council activities) Council activities) Council activities) bus used during ZAF installation ceremony for the mayor to carry brass band Driver(council The Council would ensure that coupons were always approved by the authorised officers.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to take the audit process seriously and ensure that relevant supporting documents are submitted the auditors at the time of the audit.

The Committee also urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Undelivered Library Furniture It was submitted that the cause was as the result of supplier delay to deliver the remaining furniture.

The Council had taken the matter to court in order to recover the amount of K26,503.

The matter was still in the court of law and the next hearing was set for 24th February, 2023.

231 The Council would ensure to adhere to the Financial and Procurement regulations on related matters.
Committee’s Observations and Recommendations The Committee will await the outcome of the court case.

Management of Assets Failure to Insure Motor Vehicles It was submitted that the Council did not insure motor vehicles because of liquid challenges that it was experiencing.

The Council had since insured fifteen motor vehicles except for the ten non- runner vehicles.

The Council would ensure that all motor vehicles were insured on time.
Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council did not insure vehicles at the time of the audit.

In this regard, the Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Failure to Register the Front End Loader It was submitted that the frontend loader was not registered due to the delay by the supplier to submit the clearance certificate from the ZRA.

The clearance certificate from ZRA had been received and the council had commenced the process to register the Front end Loader and the document was ready for audit verification.

The Council would endeavour to register its assets on time and as funds were made available.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Failure to Maintain Properties Libuyu Community Hall It was submitted that the query was caused by the financial challenges that the council had been experiencing which could not allow for rehabilitation of all the thirty-two Council properties in one financial year.

The Council had put in place the property maintenance policy which provided for yearly budgetary allocation towards repair and rehabilitation of at least five Council properties on yearly basis.
In the period under review, five Council properties where rehabilitated.

232 However, Libuyu Community Hall was among the properties earmarked for rehabilitation in the 2023 budget.

The Council would ensure that a budgetary provision for maintenance/rehabilitation of buildings was provided for on yearly basis to allow for regular maintenance of its properties in a phased manner.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the Community hall is rehabilitated without delay.

The Committee will await a progress report on the matter.

Failure to Maintain the Library - Leaking Roof It was submitted that the Council library was rehabilitated in 2019; the water mark in the ceiling board was as result of old ceiling board which was not removed as it was not part of the BOQ.
The Council had put in place property maintenance policy and works were prioritised.

The Council would ensure that all properties were maintained and kept in good condition.

Committee’s Observations and Recommendations The Committee notes the response and will await a progress report on the replacement of the ceiling.

iv.
iv.

Failure to operationalise the Ultra-Modern and intercity Bus Terminus Ultra-Modern Market • Ultra-Modern International Bus Terminus It was submitted that the disputes on who should run the facilities between NAPSA and the Local Authority was what caused the delay to operationalise the two facilities.

The Committee was informed that the Ultra–Modern Market and the Intercity Bus Station had since been operationalised.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Constituency Development Fund i.


Failure to Implement Approved Projects It was submitted that the delay in the implementation of CDF projects was due to lengthy contract clearance procedures.

The Council had since implemented all the approved six projects.

The Council would ensure speedy implementation of CDF projects while observing the laws and guidelines governing implementation of CDF projects.
233 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
h. Management of Liabilities - Failure to Remit Statutory Contributions It was submitted that the non-remittance of statutory obligations was due to liquidity challenges the Council was experiencing.

Livingstone City Council had entered into an agreement with the ZRA and NAPSA to a payment plan of K75,000 and K50,000 payable on every 28th and 10th of every month, respectively.

The Council had also entered into a similar Memorandum of Understanding (MoU) with LASF, NHIMA and Madison.
The Council was paying on a monthly basis.

The Council had paid a total amount of K16,329,855.32 for statutory contributions.

The Council had put in place various interventions aimed at enhancing the revenue collection efficiency so that more resources were mobilised that would enable the council to pay salaries at gross.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Other Matters - Wasteful Expenditure due to Legal Cases It was submitted that the former Director of Human Resources and Administration was dismissed by the Local Government Service Commission.

The officer sued the Commission and won the case.

The Council followed the procedure as required.


The council would endeavour to adhere to the conditions of service and other laws governing employment.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Geoffrey Sianga Thole Vs. Livingstone City Council It was submitted that the query was caused by financial challenges the Council was experiencing which led to delayed remittance of the officers contributions to the fund (LASF).

The Council paid an accrued salary of K136,294.81 to the former employee, and Local 234 Authorities Superannuation Fund (LASF) settled his pension contribution arrears amounting to K766,957.71.
Further the officers in Human Resource and Finance Departments had been oriented on the provisions of the law on retention of retired officers on payroll.

The Council would endeavour to follow the procedures in addressing the issues of retirees and would endeavour to remit staff statutory contributions on time.

Committee’s Observations and Recommendations The Committee bemoans the wastage of resources and urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Luangwa Town Council Paragraph 33 1.1 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K14,442,513 against which amounts totaling K13,372,269 were received and generated resulting in a negative variance of K1,070,244.

See table below: Table 1: Budget and Income In addition, amounts totaling K1,430,576 were brought forward from the previous year bringing 235 the total funds available to K14,802,845.
As at 31st December 2021, amounts totaling K14,074,032 had been used, leaving a balance of K728,813.

Management Response Local Taxes It was submitted that the under collection was due to non-compliance by property owners.

The major complaint was that the rates were very high especially on the values computed at the time of valuation.

The Council had intensified the sensitisation and vigorously making follow ups on those that were failing to pay.
The Council had also issued the warrant of distress and delivered to the resident Magistrate in Luangwa for execution.

By way of measures, the Council had done the following: i) the Council had continued sensitising the community on the importance of paying property rates to the Local Authority.

ii) the Council had also started the process of updating the Valuation Roll.

Fees and Charges It was submitted that the under collection on the fees and charges which included the following: i. plot premiums; ii.
survey fees; and iii.

application forms was due to the plots which were not created hence there was no sale of application forms, plot premium and survey fess.

The Council had budgeted for the differential GPS in the 2023 budget; and also employed the land surveyor through the Local Government Service Commission.

The Council had continued to sensitise the community on the importance of paying council fees.
Levies The Council submitted that this was due to floods at the harbour that affected the collection of fish levy in the first quarter of the year.

The Council had planned to construct a market on the upper land.

The Council would ensure that the construction of the market was done.

Committee’s Observations and Recommendations The Committee notes the submission and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

236 Operational Matters - Environmental Management b.

It was submitted that: i) ii) iii) The Environmental Project Brief (EPB) was not in place at the time of the audit.

The dumpsite was not fenced at the time of audit due to financial constraints.

The Covering of the waste was not done because the grader was not operational at the time of the audit.

It was also submitted that: i) ii) the EPB was prepared and submitted to ZEMA for approval.
Game wire for fencing had been procured and the process of fencing the dumpsite had commenced.

The covering of the waste was done.

iii) Committee’s Observations and Recommendations The Committee finds the failure by the Council to designate a dumpsite unacceptable as it was detrimental to the health of the community.

In this regard, the Committee urges the Accounting Authority to expedite the designation of a dumpsite without delay.

The Committee will await a progress report on the matter.
Management of Payroll and Other Staff Related Matters Failure to fill Vacant Positions c. i.

It was submitted that the mandate of employing officers in division I to III was vested in the Local Government Service Commission.

The Council submitted the vacant position status report for critical positions, of which four officers had been employed.

The Council would ensure that the vacant positions were filled gradually taking into consideration the capacity to pay salaries by the Local authority.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter.

The Committee will await a progress report on the matter.

ii.

Over Employment of Staff It was submitted that the over employment was due to transfers by Local Government Service Commission.

The Council had submitted the excess number of employees to the Local Government Service commission, of which two out of three officers had been redirected to other Councils.
The Council would ensure that the Local Government Service Commission was informed whenever transfers were done for positions that were already filled.

237 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter.

The Committee will await a progress report on the matter.

Officer Absent from work without Authority iii.


It was submitted that the officer travelled before authority was granted by the Local Government Service Commission for fear of losing the opportunity of the Government initiated sponsored programme.

It was also submitted that the officer was charged and he exculpated himself and the Local Government Service commission was informed accordingly.
The Council would ensure that the officers obtain authority from Local Government Service Commission before they go to school.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

d. Management of Assets i.


Lack of Title Deeds It was submitted that the title deeds were not obtained because the properties were not surveyed and numbered.

The properties had since been surveyed and numbered.

The offer letters had been obtained and awaiting the issuance of the title deeds by the Ministry of Land and Natural Resources and all Council properties have been insured.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Fire Services Failure to provide protective clothing for Fire fighters e. i.

It was submitted that this was due to the financial constraints the Council experienced during the year 2021.

The protective clothing for the officers had been procured.
The Council would ensure that the fire officers were equipped with appropriate protective clothing in line with section 16 and subsection (1) of the Occupational Health and Safety Act, No.

36 of 2010 and ensure that they keep their protective gear properly.

238 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee resolves to close the matter subject to audit verification.

Failure to Insure Fire Officers ii.

It was submitted that the officers had not been insured at the time of the audit due to financial constraints the Council faced during the year under review.

The thirteen fire officers had been insured.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the insurance of the fire service officers without exception.
The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of the Local Government Equalisation Fund f. i. Misapplication of Funds It was submitted that funds were used to finance the shortfall on salaries due to a huge wage bill.

The Council had put in place a payment plan and K10,000 would be paid back every month.
The Council would ensure that capital funds were spent on capital projects in accordance with the Local Government Act, No.

2 of 2019.

Committee’s Observations and Recommendations The Committee finds the violation of the Local Government Act, No.

2 of 2019 unacceptable and urges the Accounting Authority to desist from the practice as this was detrimental to the implementation of capital projects.
The Committee also urges that supporting documents be submitted to Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Failure to Reimburse Borrowed Funds It was submitted that this was due to a shortfall on salaries and the low revenues collected to meet the net wage bill.

The Council had put in place a payment plan and K10,000 would be paid back every month.
The Council would ensure that capital funds were spent on capital projects in accordance with the Local Government Act, No.

2 of 2019.

Committee’s Observations and Recommendations The Committee finds the violation of the Local Government Act, No.

2 of 2019 unacceptable and urges the Accounting Authority to desist from the practice as this was detrimental to the implementation of capital projects.
The Committee also urges that supporting documents be submitted to Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

239 iii.

Road Maintenance  Grading Mburuma Street - 1,636 metres The Council planned to grade a stretch of 1,636 metres of Mburuma Street and install three culverts.

However, it was observed that although the road was graded and formed, the Council did not install the three culverts.
Consequently, the road was washed away during rainy season.

It was submitted that the culverts were not installed because they were not budgeted for.

The Council had done the rip rapping on gullies and depressions were water passed.

The Council would ensure that the culverts were budgeted for in the year 2024.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

 Air strip grading – 4.5 Hectares It was submitted that the usable land that was budgeted for was 0.4 Hectares and was worked on as observed by the Auditor General.

Additionally, the poor workmanship was due to lack of proper earth moving equipment.
The Council had procured a new Motor Grader under the Constituency Development Fund and was planning to procure other earth moving equipment such as a tipper truck, front end loader and compactor to help in the maintenance of the airstrip, township and feeder roads.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
g. Management of Constituency Development Fund – Unimplemented Approved Projects It was submitted that this was due to the delayed approval by the Ministry of Local Government and Rural Development.

The Committee was informed that the procurement process for 2021 Constituency Development Funded projects commenced immediately after the Ministry approved the projects in October, 2022 and not on 21st April, 2021 as indicated in the audit observations.
The Council would ensure that the approved projects were implemented in accordance with the Constituency Development Fund Act, No.

11 of 2018 and the Guidelines.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the projects are implemented without delay.

The Committee will await a progress report on the matter.

Management of Liabilities h. i.


It was submitted that the failure to remit statutory obligations was due to the financial constraints Failure to Remit Statutory and Other Obligations 240 being experienced by the Council to meet the gross wage bill.

The Council had been making payments to various statutory bodies as and when funds were available.
The Ministry of Local Government and Rural Development had been deducting at source from the Local Government Equalisation Fund contributions for LASF, ZULAWU and FIRESUZ.

The Council managed to remit a total of K250,463 to the various statutory bodies.

Further, the Council made a request to the Ministry of Local Government and Rural Development for a possible increase on the Local Government Equalisation Fund allocated to Luangwa Town Council of which the Ministry responded.
An agreement was also done with National Pension Scheme Authority for a debt swap involving Land in 2017.

But later they rescinded their decision.

The Council would strive to remit as much as possible the contributions to the various institutions as and when funds were available.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the offsetting of outstanding statutory obligations and desist from violating workers Conditions of Service and relevant legal provisions.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to Settle Staff Obligations ii.


It was submitted that the failure to pay was due to financial constraints being experienced by the Council to meet the staff obligations as they fell due.

The Council had been liquidating staff obligations as per the payment plan in place.

The Council had paid a total of K429,926.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Luanshya Municipal Council Paragraph 34 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: 241 a.
Budget and Income During the period under review, the Council had budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K80,965,054, against which amounts totaling K52,261,979 were received and generated resulting in a negative variance of K28,703,075.

See table1 below.

Table1: Budget and Income Source of Funds No.
Locally Generated Local taxes Fees and Charges Licenses Levies Permits Commercial Venture Other Receipts Subtotal National Support Local Government Equalisation Fund Constituency Development Fund Budget K Income K 40,189,863 11,590,492 204,850 885,965 1,361,200 1,080,000 8,860,050 64,172,420 26,450,594 6,629,701 961,082 68,878 1,743,173 92,581 57,999 36,004,007 Variance K (13,739,269) (4,960,791) 756,232 (817,088) 381,973 (987,419) (8,802,051) (28,168,413) 8 9 10 Other Grants Subtotal Total 13,592,634 3,200,000 - 16,792,634 80,965,054 In addition, amounts totaling K8,092,176 were brought forward, bringing the total funds available to K60,354,155 out of which amounts totaling K56,964,881 were spent leaving a balance of K3,389,274.
(584,662) - 50,000 (534,662) (28,703,075) 13,007,972 3,200,000 50,000 16,257,972 52,261,979 Management Response i.

Local Taxes, Fees and Charges, Licences, Levies, Permits and Other Receipts The failure to collect the budgeted revenue was as a result of low compliance levels from the community, being an election year.
It was submitted that the Council was in the process of implementing a digitalised payment platform to enable clients pay Council taxes, making it easier and more convenient thereby improving compliance levels and collection efficiencies.

The council had also assigned each department to collect a portion of the budgeted revenue for the financial year 2023.
The Council would in future endeavor to explore means and ways on how to improve revenue collection efficiency and improve compliance from clients especially, through information technological solutions and also employ prudence in budgeting to ensure only confirmed and attainable revenue sources were included in the budget.
242 Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Commercial Venture It was submitted that the failure to collect revenue on commercial venture was due to the fact that Baluba Motel rooms were under renovation, while truck park, conference hall, restaurant and bar were not operational in the year under review.

The council had phased the renovation works of the commercial venture so that part of the venture could start operating and generate revenue.
The Committee was informed a truck park, conference hall, restaurant and bar had since been renovated and due to open before the end of the first quarter 2023.

The Council would in future endeavor to explore means and ways on how to improve revenue collection and improve compliance from clients especially through information technological solutions and also employment of prudence in budgeting to ensure only confirmed and attainable revenue sources were included in the budget.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the completion of renovation works at Baluba Motel as it was key to enhancing the revenue generation of the Council.

The Committee will await a progress report on the matter.
Operational Matters Failure to Maintain Street Lights It was submitted that at the time of the audit, it did not maintain street lights along nineteen main township roads because of liquidity challenges and high level of vandalism in the district.

The Council had procured a total of 100 solar street lights to cater for the main township roads and had since commenced installing the street lights and already four streets had been lit namely; Luanshya- Ndola, Buntungwa, Independence and H figo Roads.
The Council had also repaired and installed bulbs in street lights along Luanshya – Ndola Road, which had electricity powered street lights.

The Council would endeavor to adhere to the Maintenance Management Policy.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Failure to Maintain Roads It was submitted that the roads in the Central Business District area were in a deplorable state because they were very old and extensively damaged and needed substantial funding to repair 243 them to an acceptable standard and the Council did not have adequate funds to finance the repair works during the period under review.
The Council embarked on and launched a Restore Luanshya Campaign, aimed at restoring Luanshya to its former glory as the Garden City, through Public Private Partnership and the major focus amongst others was the repair of roads.
It was submitted that the Council had since continued patching the potholes in the Central Business District using own resources and had also recently received a donation of K2.5 million from Luanshya Copper Mines and ten drums of bitumen in support of the campaign for the full repair of 15th Street which was the main central Road in the central business area as captured by the auditors.
The Council would endeavor to follow the maintenance policy and do periodical maintenance on the roads to avoid the extensive damage.

Committee’s Observations and Recommendations The Committee observes with concern that the Council was not taking advantage of the various revenue streams to work on the dilapidated roads in the District.
In this regard, the Committee urges the Accounting Authority to take advantage of the capital funds and the enhanced CDF, among other avenues to uplift the state of road infrastructure in the District without delay.

The Committee will await a progress report on the matter.

Poor Maintenance works on the Road funded by National Road Fund Agency It was submitted that at the time of the audit the roads were in a deplorable state.
However, the Council had been mending the potholes on the roads, but due to the fact that the road had out lived its life span, no matter how much the potholes were worked on, they kept on developing in new areas.

The Council had continued to engage the private sectors to help in the maintenance of the roads and also written to NFRA to help with full rehabilitation of the road, in order to minimise the damages on the road.
The Council had written to RDA to carry out a complete overhaul of the Ndola - Luanshya Road.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to re-engage Road Development Agency on the matter.

The Committee will await a progress report.


Accounting for Revenue Printing of Accountable Documents from Private Institutions It was submitted that the practice of using accountable documents acquired from private printers had since been stopped and the Council was now printing all its stationery from recommended printers by the Ministry of Finance and National Planning.
244 The Council had since continued to get the accountable documents from the Ministry of Finance and National Planning Strong-room and had also continued engaging short-horn printers for the supply of accountable documents, as recommended through the circular from Ministry of Local Government and Rural Development.
Committee’s Observations and Recommendations The Committee finds the violation of the cabinet circular unacceptable and urges the Accounting Authority to desist from the practice as it had a potential to create financial leakages.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Management of Payroll and Other Staff Related Matters Over Employment of Staff It was submitted that employment of officers under division I up to III was the preserve of the Local Government Service Commission and the local authorities just receive staff that were deployed by the Commission.

The Local Government Service Commission had been written to on the matter.

The Council had been submitting staff returns that showed the over employment in certain departments.
The Council would continue to engage the Service commission on staff related matters.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report.


Employees without Requisite Qualifications It was submitted that employment of officers under division I up to III was the preserve of the Local Government Service Commission and the local authorities just received staff that were deployed by the Commission.

The Council had written to the Service Commission to address the matter.

The Council also submitted staff returns which showed the qualifications of staff.
The Council would continue to engage the Service Commission over the deployment of qualified staff to avoid the query.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report.


Failure to Confirm Officers on Probation It was submitted that confirmation of officers in divisions I to III was the preserve of the Local 245 Government Service Commission.

The Council resubmitted the recommendations of the affected employees to the Service Commission for confirmation and Seven of the thirteen officers had since been confirmed.

The Council would continue to engage the Service Commission to confirm the affected Staff when they were due.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report.


Management of Stores–Stores without Receipt and Disposal Details It was submitted that during the time of the audit, the documents were still with respective departments and were retrieved and submitted to the auditors for verification and they were dully verified.

The Council had put in measures to improve the filling of documents.

Committee’s Observations and Recommendations The Committee resolves to close the matter.
Failure to Control Street Vending It was submitted that the issue to do with street vending was caused by political interference, as 2021 was an election year.

The Council had since removed all the street vendors from the streets and placed them in the markets and other designated trading places.

The Council would continue to engage the stakeholders so that they continued to trade in designated areas.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Constituency Development Fund Wasteful Expenditure - Economic Empowerment-Chicken Rearing The Accounting Authority submitted that at the time of the audit, the five sampled cooperatives had no chicks available in the poultries.
This was due to inadequate funding which was allocated to the clubs.

For the clubs to operate to the standard, they needed chicken run, medicine, chicks, feeds and other related materials to sustainably run the business.

Further the allocation of K4,000 was against technical advice that was rendered to the CDF Committee.

The allocation had been adjusted upwards from K4,000 to the minimum of twenty K25,000 per club or cooperative.
Sensitisation on financial literacy and management of project had been conducted in all the thirty wards in the district to ensure capacity building for the sustainability of the clubs The 2022 CDF Guidelines had addressed the shortcomings in the earlier CDF Guidelines on 246 empowerment funds and the Council would endeavor to follow the CDF Guidelines.
Committee’s Observations and Recommendations The Committee bemoans the wastage of resources and the unprofessional manner in which the CDF Committee conducted itself by ignoring technical advice.

In view of this, the Committee urges the Controlling Officer in the Ministry of Local Government and Rural Development to develop capacity building programmes aimed at enhancing the skills in the management of CDF.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report.

Management of Assets Failure to Maintain Properties  East Bar –Mikomfwa  Mikomfwa Main Market Ablution Block  Muchinsi Cocktail Bar It was submitted that the failure to repair and maintain Council Buildings was due to inadequate budgetary allocation.
The Council had started renovating its buildings in a phased approach.

The Council would ensure that it adhered to its maintenance policy and see to it that its buildings were renovated.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that all the sited buildings are renovated without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Management of Liabilities–Failure to Remit Statutory Obligations It was submitted that the Council had taken measures set out below.

 The Council had entered into an agreement with NAPSA to pay its debts under a payment plan agreement and was also paying its existing contributions.

 The Council had paid ZRA K1.2 million in the last quarter of 2022 towards its debt and had also entered into a Time to Pay agreement with the Authority.
 As for LASF, the Council was paying for present obligation and the arrears were paid by the Central Government.

 As for NHIMA the Council had paid all arrears and was current.

The council had embarked on revision of its valuation roll in an effort to improve its own source revenue base and subsequently be able to pay its statutory obligations as they fell due.
The 247 existing valuation roll would expire at the end of 2023 and commencing 2024, the Council would be billing property rates using the new valuation roll.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that statutory obligations are paid when they fall due as failure to do so amounts to the violation of the employees Conditions of Service and the other pieces of legislation.
The Committee, however, urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report.

Lukulu Town Council Paragragh 35 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K14,352,827 against which amounts totaling K14,001,163 were received and generated resulting in a negative variance of K351,664.

See table 1 below.
See table 1 below.

Table 1: Budget and Income In addition, funds amounting to K4,085,059 were brought forward from the previous year bringing the total funds available to K18,086,222.
Management Response 248 No.Source of FundsBudget KIncome KVariance KLocally Generated1Local Taxes10,000 5,985 (4,015) 2Fees and Charges528,900 469,135 (59,765) 3Licences21,420 7,044 (14,376) 4Levies904,000 962,315 58,315 5Permits17,390 13,480 (3,910) Sub-Total1,481,710 1,457,959(23,751) National Support6Local Government Equalisation Fund10,921,11610,709,703(211,413) 7Constituency Development Fund1,600,0001,600,000- 8Other Receipts350,001 233,501 (116,500) Sub-Total12,871,11712,543,204(327,913) Total Income14,352,827 14,001,163 (351,664) Local Taxes The cause for low collections on the local taxes of K5,985, against a budgeted amount of K10,000 was to a large extent due to low business considering that the year 2021 was a post COVID-19.
Most businesses faced serious financial challenges and as a result scaled down most of their business operations.

Fees and Charges The cause for the low collections on fees and charges of K469,135 against a budgeted amount of K528,900 was the delay in the opening of the new bus station.

It was anticipated that K100,000 would be collected from the bus station which was part of the fees and charges budget of K528,900.
The bus station was expected to be opened by July 2021 but it was instead opened in December 2021.

Licenses The cause for the low collections on licenses of K7,044 against the budgeted amount of K21,420 was to the large extent due to low business considering that the year 2021 was a post COVID-19.

Most business houses faced serious financial challenges as a result scaled down their business operations.
Levies The cause of the above 100 percent performance on levies of K962,315 against a budgeted amount of K904,000 was as a result of more timber production than anticipated and therefore collected more levies than expected.

Permits The cause of low collection on permits of K13,480 against a budgeted figure of K17,390 was to a large extent due to low business considering that the year 2021 was a post COVID-19.
Most business houses faced serious financial challenges especially restaurants and bars and as a result scaled down most of their business operations.

Other Income The cause of low collections under the receipts, of K233,501, against a budgeted figure of K350,001 was largely due to low business performance at the Council butchery.

It was anticipated that K350,001 would be collected from the butchery in the year 2021, but instead only collected K233,501 representing a 66.7 percent collection efficiency.
National Support The cause of low collections on Local Government Equalisation Fund (LGEF) of K10,709,703 against a budgeted figure of K10,921,116 was due to deductions at source of K211,413 by the ministry of Local Government and Rural Development.

The deductions were not receipted by the council considering that the Council was using Cash Basis Accounting and as such only revenue received was recorded in the council books.
It was submitted that the Council had embarked on more sensitisation on compliance to pay to Council by business houses.

The general public was also being sensitised on the importance of 249 paying local taxes to the Council.

The re-capitalisation amount of K500,000 for the butchery which was factored in the 2023 annual budget would raise business at the butchery and the vault for the other incomes where the butchery fell would also yield higher performance.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the budget is not understated and put measures in place to actualise it, without fail.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.

Operational Matters - Environmental Management i.


Poor Management of the Lukulu Dumpsite  The Council did not compact or cover the waste with a layer of soil but instead waste was being burnt thereby exposing the community to health hazards.

Management Response It was submitted that the waste was not compacted or covered with soil at the time of the audit because the Council did not have the rightful equipment to use.
The Council had covered the waste and compaction had been done using a hired compactor.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

 The dumpsite was not fenced for protection from access by unauthorised persons.
Management Response The fencing of the dumpsite was not done at the time of the audit due to the slow pace of the contractor.

The construction of a wall fence around the dumpsite was underway with most of the works already done.

The wall fence was expected to be completed by May, 2023.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

ii.

Lack of Receptacles at New Market It was submitted that the waste holding bay was not in place at the time of the audit because it was not included in the 2021 annual budget under capital projects.

Management had budgeted 250 for the construction of the waste holding bay at an amount of K26,338 in the 2023 annual budget.
Works for the waste holding bay would commence once the budget was approved by the Ministry of Local Government and Rural Development.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to ensure that the waste holding bays are elected without delay.

The Committee will await a progress report on the matter.
c. Accounting for Revenue - Failure to Collect Revenue The cause for low collections on the billboards and pole levy, of K5,820, against a budgeted amount of K70,690 was due to the difficulty Council faced in collecting the debt from ZESCO.

The low performance on trading permits, of K95,552, against a budgeted amount of K120,062 was to a large extent due to low business performance by business houses considering that the year 2021 was a post COVID-19.
Most businesses faced serious financial challenges and as a result scaled down most of their business operations.

The Council had engaged the services of a debt collector to collect outstanding billboard and pole levy on behalf of the Council.

The Council would continue to sensitise the business houses not only on compliance to pay to council but also on the importance to pay to Council.
Committee’s Observations and Recommendations The Committee finds unacceptable the failure by the Council to collect revenue and therefore urges the Accounting Authority to ensure that the outstanding revenue is collected without delay.

The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

d. Management of Payroll and Other Staff Related Matters i.
Over Employment of Staff It was submitted that the over employment of staff which was as a result of more employees deployed the establishment.

Communication to the Local Government Service Commission was done and Council awaited feedback on the matter.

to Lukulu Town Council the required number on than Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Service Commission on the matter.

The Committee will await a progress report on the matter.

ii.
ii.

Unsupported Payment of Outlier Allowance It was submitted that the officer in question joined Lukulu Town Council on promotion from Nchelenge Town Council.

According to the records submitted by the officer, an outlier was to be paid accordingly.

The records were available for verification.

An enquiry had since been instituted with the Nchelenge Town Council to establish the 251 eligibility of the outlier.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the matter is followed up without delay, with a view to recovering money in an event that the officer was not entitled.

The Committee also strongly cautions the Accounting Authority desist from approving payments in the absence of facts on a matter.

The Committee will await a progress report.

iii.


Failure to Fill in Key Positions It was submitted that the Council made recommendations to the Local Government Service Commission to fill in the vacant positions to which the Commission responded by recruiting three officers for the key positions.

The Local Government Service Commission had delegated some of its duties to locally formulated Human Resources Committees.
The move would improve the manner in which staff matters were handled in local authorities by decentralising the powers of the Local Government Service Commission.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

e. Management of Assets i.


Failure to Safeguard/protect installed Street Lights f. Management of Local Government Equalisation Fund i.

Construction of Restaurant and Bar-Delayed Completion It was submitted that Management had been engaging the contractor to speed up the works and the contractor had made considerable progress with the super structure reaching the roof level.

The contractor was expected to finish the works by April 2023.
Going forward the Council would continue to engage the contractors to expedite the works and complete within the stipulated time.

Council would have no option but to terminate the contracts that would not adhere to contract terms.
Committee’s Observations and Recommendations The Committee bemoans the poor contract management and urges the Accounting Authority to ensure that measures are put in place to address the matter as it awaits progress report on the full implementation of the project, without delay.

The Committee will await a progress report on the matter.

ii.

Construction of the Fence at the Dump Site It was submitted that the delay in progress was as a result of the slow performance of the contractor.
Management had been engaging the contractor to speed up the works and the contractor had made considerable progress with the construction of the perimeter wall fence.

The 252 contractor was expected to finish the works by May, 2023.

Going forward the Council would continue to engage the contractors to expedite the works and complete within the stipulated time.
Committee’s Observations and Recommendations The Committee bemoans the poor contract management and urges the Accounting Authority to ensure that measures are put in place to address the matter as it awaits progress report on the full implementation of the project, without delay.

The Committee will await a progress report.

g. Management of Constituency Development Fund i.


Construction of Staff House at Mulumbu RHP-Delayed Completion It was submitted that management terminated the contract due to delay in execution of the works.

Another contractor was engaged to complete the works and considerable progress had been made.

Going forward the Council would continue to engage the contractors to expedite the works and complete within the stipulated time.
The Council would have no option but to terminate the contracts that would not adhere to contract terms.

Committee’s Observations and Recommendations The Committee bemoans the poor contract management and urges the Accounting Authority to ensure that measures are put in place to address the matter as it awaits progress report on the full implementation of the project, without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Completion of Staff House at Nalusheke Primary School It was submitted that Management terminated the contract due to delay in execution of the works.

Another contractor was engaged to complete the works and the staff house had since been completed and handed over to the Council.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Completion of a Rural Health Center at Kashinangombe It was submitted that management had terminated the contract due to poor performance by the contractor.

The Council was in the process of engaging another contractor to complete the works.
Committee’s Observations and Recommendations The Committee bemoans the poor contract management and urges the Accounting Authority to ensure that measures are put in place to address the matter as it awaits progress report on the re- engagement of another contractor, without delay.

The Committee will await a progress report on 253 the matter.

iii.

Construction of 1x3 CRB at Kashongo Primary School It was submitted that management engaged the contractor and the outstanding works were completed.
The project had even been handed over to the Council and was in use by the beneficiary.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

h. Management of Liabilities i.


Failure to Remit Statutory Obligations It was submitted that management had devised an initiative of paying the current bills as and when they fell due and also devised a payment plan towards debt liquidation.

The Council would continue to pay the statutory obligations as and when they fell due consistently to avoid further accumulation of the debt whilst also paying for the historical debt as per payment plan.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of statutory obligations in line with the law and the workers Conditions of Service.

The Committee also urges that all outstanding statutory liabilities are cleared without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Settle Staff Obligations It was submitted that management had devised an initiative of paying the current bills as and when they fell due and also devised a payment plan towards debt liquidation.

The Council would continue to pay staff obligations as and when they fell due consistently to avoid further accumulation of salary arrears whilst also paying for the historical debt accumulated on salary arrears and long service bonus as per payment plan.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of staff obligations in line with the law and the workers Conditions of Service.

The Committee also urges that all outstanding staff liabilities are cleared without delay.

The Committee will await a progress report on the matter.
Lusaka City Council Paragraph 36 Audit Findings An examination of financial and other records maintained at the Council for the financial year 254 ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K347,764,004 against which amounts totaling K361,558,866 were received and generated resulting in a positive variance of K13,794,862.

See table 1 below.
See table 1 below.

Table 1: Budget and Income In addition, amounts totaling K11,380,371 were brought forward from the previous year bringing the total funds available to K372,939,237.

As at 31st December, 2021 amounts totaling K368,345,403 had been spent leaving a balance of K4,593,834.

Management Response (i) Local Taxes The failure to collect taxes particularly property rates by K1,487,240, was due to the partial implementation of the 2019 main Valuation Roll.
This was because the Rating Valuation tribunal only gave Lusaka City Council a partial award resulting in other rate payers refusing to pay.

Lusaka City Council had written to the Ministry of Local Government and Rural Development to constitute the rating tribunal to conclude on the Valuation Roll to enable all rate payers to pay their rates.

Further, the Valuation Roll had since been completed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

(ii) Fees And Charges The negative variance under fees and charges, amounting to K21,472,634 was as a result of uncollected billboard fees from outdoor advertising agents and market/bus station fees.
A group of seven outdoor advertising agents had taken Lusaka City Council to court, contesting 255 the increase in fees that they were required to pay under Case No.

2011/HP/531.

On 5th April, 2022, the said companies obtained an Expert Order for the Stay of Execution (of warrants of distresses) from the Lusaka High Court of Zambia.

This had resulted in fees accumulating and Council recording a negative variance of K17,051,005 pending the conclusion of the matter by the courts of law.
The seven companies constitute the largest market share of the outdoor advertising market.

On the other hand, revenue from markets/bus Stations was negatively affected due to vending that was legalised initially on Lumumba Road.
Lusaka City Council under Minute Number SC/03/12/22 resolved to suspend issuance of any additional advertising sites to the seven companies until the matter in court was concluded and not to renew the leases of the seven outdoor advertising Companies until the conclusion of the court matter or if they withdrew the matter from court.
The Council was ensuring that all contracts with outdoor Advertising companies were designed to expressly provide for adjustment of fees and exit/termination clauses that favoured the Authority.

Committee’s Observations and Recommendations The Committee expresses displeasure at the situation regarding the said seven outdoor advertising companies and the Council.

The Committee, however, resolves to await a progress report on the outcome of the Court case.
(iii) Licences The negative variance reported under licences, amounting to K20,580,677 was as a result of most of the trading premises such as bars and night clubs still operating under the three year liquor licences issued under Section 6 (2) of the Liquor Licensing Act, No.20 of 2011.

This impacted negatively the collection of revenue under this vote.
The Council had prepared a database of all bars and night clubs operating in Lusaka and was updating the data base with the existing licence information in order that the expiry dates were taken into consideration.

Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council proceeded to budget for Licences it new that were running for three years.

In this regard, the Committee urges the Council to be realistic when coming up with the budget.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

(iv) Levies The negative variance reported under Levies amounting to K5,760,476 was due to the reduced level of business activities in the City of Lusaka as a result of the second wave of COVID-19 pandemic.
A number of businesses did not renew their business levy in the year under review 256 resulting in the above stated negative variance.

The Council encouraged business owners to continue operating under what was called the new normal with the provision of hand washing facilities and social distancing of customers but encouraging them to pay their fees.

The Council waived the payment of penalties on business levies and effecting closures on businesses.
COVID-19 preventive measures had since been relaxed encouraging businesses to operate at full capacity.

This would require business owners to renew business levies and also pay for the years they operated without paying.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
(v) Permits The positive variance reported under Permits amounting to K12, 362, 807 was as a result in part, due to the increased number of fire certificates issued in the year under review that saw the Council collect a total of K20,196,616 and exceeded the budget by over 300 per cent.

The Council had undertaken to update the Health and Fire Certificates database to ensure all business premises were captured and all revenues due to the Council was collected.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

(vi) Other Grants The grants received were not budgeted for but received from the Ministry of Local Government and Rural Development for the specific reason of collecting and compiling data on all local authorities wage bills.
Lusaka City was used as the host Council and the funds meant to cater for logistics of the said undertaking.

The funds received had since been retired to the Ministry of Local Government and Rural Development.

The Council would endeavor to seek guidance from the Ministry of Local Government and Rural Development on all possible funding of grants during the year for possible inclusion in the Budget.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

257 (vii) Other Receipts The positive variance on other receipts amounting to K64,204,581 included a sum of K39,577,499 received for the facilitation of the 2021 General Elections.
Further, the remaining balance of K24,627,082 was as a result Council leasing of some of its properties to private developers and requiring these customers to pay upfront commitment fees which where prepayments of periods ranging from 1 year or 2 years.

The same included the disposal of one of the assets of the Council, the North Mead Car Park.

The funds were received and receipted in the year under review.
The Council would ensure that all revenues in the municipality were included in future budgets when seen feasible.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
(viii) Commercial Venture The negative variance on commercial venture amounting to K8,170,000 was as a result of the poor performance in the Council’s Commercial ventures such as the three markets (City Market, New Soweto Market and the BH Market) and two stations being the Intercity Bus Terminus and the Kulima Tower Bus Station.

The establishments were not able to fulfill their monthly obligation of contributing to Lusaka City Main office at the expected minimum targets.
The Council had set monthly performance targets to the said and other autonomous markets and contribute a specific amount to the Council Main office.

The Council under Minute No.SFV and CU/04/07/22 resolved that each of the said commercial ventures should contribute a specific amount without fail.
In order to avoid failure to contribute the expected contributions, Council placed monthly standing orders on bank accounts for Intercity Bus Terminus, Kulima Tower and Council City Market, on 12th August, 2022 and would extend the same to New Soweto and BH Markets as soon as the eLevy System which had been implemented at the two Markets had been deployed in fully and all the teething problems were resolved.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.

Operational Matters – Environmental Management i.

Failure to Manage Chunga Dumpsite The Chunga landfill in its obtaining state was a dumpsite as opposed to it being a landfill.
The 258 landfill would only be able to function as a landfill by way of having engineered cells that would allow for compacting waste once the procured equipment had been delivered.

The Council was in partnership with the Ministry of Finance and National Planning and formed a Company called the Lusaka Integrated Solid Waste Management.

The company commenced operations and would be responsible for all matters of Solid Waste Management in the City of Lusaka.
The Company was awaiting the delivery of equipment procured through the support from Japan International Co-operation Agency (JICA) in the second quarter of 2023.

Further, in 2021, Lusaka City Council commenced the procurement of services of companies that would establish a waste to energy facility.

The process had reached an advanced stage with the evaluation committee undertaking due diligence on the two shortlisted companies.
The Council would offer support to the Lusaka Integrated Solid Waste Management Company in order to help resolve the challenge of Solid Waste Management in the City as well as at the landfill.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the stipulated measures are realised without delay.

The Committee will await a progress report on the matter.

Illegal Disposal of Waste ii.


It was submitted that the indiscriminate disposal of solid waste in the city was on the increase.

This was as a result of people failing to subscribe to franchise contractors and community based enterprises.

The Lusaka Integrated Solid Waste Management Company with the support of the Lusaka City Council once fully operational by the end of Second quarter of 2023, would enforce the law as provided under section 21(5) of the Solid Waste Management Regulation and Act, No.
20 of 2018.

Further, the Council had commenced the engagements with the Fast Track Court based at Civic Centre to help in the prosecution of illegal waste collectors who in most times ended up dumping waste indiscriminately in undesignated places.

Committee's Observations and Recommendations The Committee expresses concern at the poor management of waste by the Council, contrary to the Solid Waste Management Regulation and Act, No.
20 of 2018. the Committee find this unacceptable, especially that Lusaka is the Capital city of the Zambia.

In this regard the Committee urges the Council to be proactive and deliberate in the identification and management of waste collection sites without delay.

The Committee also urges that more resources be mobilised and invested in the management of waste.

The Committee will await a progress report on the actualisation of the stipulated issues without delay.
The Committee will await a progress report on the matter.

259 c. Accounting for Revenue i.

Failure to Collect Revenue  Revenue from Rates, Billboards and Rentals (i) Rates The failure to collect taxes particularly property rates by K170,087,178 was due to the partial implementation of the 2019 Valuation Roll.
This was because the Valuation Tribunal only gave Lusaka City Council an interim (partial) award resulting in other rate payers who had objected to the valuation roll in line with the provisions of Section 17 of the Rating Act, No.

21 of 2018.

Lusaka City Council had written to the Ministry of Local Government and Rural Development to constitute the rating tribunal to conclude on the Valuation Roll to enable all rate payers to pay their rates.

Further, the Valuation Roll had since been completed.
In order to encourage rate payers to pay their rates including their outstanding balances, the Council at its sitting on 15th July, 2022, under Minute number FV and CU/67/06/22 resolved to grant all rate payers a 25 per cent amnesty in order to allow them to settle only 75 per cent of what they owed the Lusaka City Council.

This saw the Council collect a total of K102,000,000 in the financial year 2022.
On the other hand, the Council under the same minute resolved to engage debt collectors to collect all historical debt that was collectable after adjusting for balances on properties owned by Government.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
(ii) Billboards The negative Variance under Fees and Charges amounting to K32,841,007 was as a result of uncollected billboard fees from outdoor advertising agents.

A group of Seven outdoor advertising agents had taken Lusaka City Council to Court contesting the increase in fees that they were required to pay.

This had resulted in fees accumulating pending the conclusion of the matter by the courts of law.

The Seven companies constituted the largest market share of the outdoor advertising market.
Lusaka City Council under Minute number SC/03/12/22 resolved to suspend issuance of any additional advertising sites to the Seven companies until the matter in court was concluded.

The Council was ensuring that all contracts with outdoor advertising companies were designed to expressly provide for adjustment of fees and exit clauses that favoured the Authority.
260 Committee’s Observations and Recommendations The Committee expresses displeasure at the situation regarding the said seven outdoor advertising companies and the Council.

The Committee, however, resolves to await a progress report on the outcome of the Court case.

(iii) Rentals It was submitted that tenants did not pay rentals citing financial challenges as a result of reduced business activities due to COVID-19 pandemic.
The Council had written an eviction letter to the tenant to vacate the premises and had commenced legal proceeding to recover the outstanding amount.

 Revenue from Leased Play Park It was submitted that the tenant did not pay rentals on the property as they claimed to have developed a property on the said piece of land at their cost which they had wanted to recover from the Council against their rentals.
The Council had written to the tenants claiming the payment of the rentals as the said development were not undertaken on the piece of land with consent of the Council as provided for under the lease agreement.

The Council would ensure that all tenants in Council leased properties paid their rentals as and when they fell due.
Committee’s Observations and Recommendations The Committee urge the Accounting Authority to revise the regulations that govern the management open spaces so that the investments of would be developers are protected.

The Committee contends that the current management of open spaces left developers vulnerable in cases were the Council decided not to renew the annual Licences.

The Committee also urges that all the outstanding rentals are collected, without delay.
The Committee resolves to await a progress report on the matter.

d. i.

Management of Assets Irregular Change of Ownership - Plot Number LUS/2832-Lusaka Municipal Sports Club It was submitted that according to the records at the Lusaka City Council, the property in question was still a Council property but records at the Ministry of Lands indicated that it was a property belonging to the Lusaka Municipal Sports Club Trustees.

The said transfer of ownership of title (No.


3928) was issued on 8th January, 2002.

The Council had engaged the Office of the Commissioner of Lands through letters written dated 16th December 2013, 11th July 2014, 14th July 2015, 22nd February 2016, 25th August 2016 and 28th March 2022, requesting the Commissioner of Lands to Cancel the Certificate of title under property number LUS/2832 and revert ownership to Lusaka City Council and response was being awaited.
261 The Council would ensure that all properties were secured and caveats were placed to avoid people converting Council property illegally.

Committee’s Observations and Recommendations The Committee expresses concern at the manner in which the ownership of the said property was transferred.

In this regard, the Committee urges the Accounting Authority to ensure that the matter is addressed and the title deed, renamed into Lusaka City Council, without delay.
The Committee will await a progress report on the matter.

ii.

Lack of Title Deeds It was submitted that the Council commenced the process of obtaining title deeds in 2018 for properties that were not titled and were falling on state land.

This was done by way of engaging a company called Datum Surveying, which was engaged to prepare survey diagrams for all Council properties falling on state land.
A number of properties were on title and the Council was working on obtaining title deeds for the twenty-nine.

The Council has once again engaged the Commissioner of lands for supersede diagrams.

Further, Council engaged Medici Land Governance, the company contracted by the Government, through the National Titling Programme, to issue title deeds to the remaining 165 properties as they were falling in the improvement areas that were under the Programme.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to await a progress report on the matter.

iii.

It was submitted that the nineteen motor vehicles had since been insured.

The Council would ensure that all motor vehicles and other Council properties were insured in time.
Failure to Insure Motor Vehicles Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to await a progress report on the matter.

Unauthorised Creation of Markets, Shops and Stalls e. Land Management - Shops/stalls i.

It was submitted that the shops or stalls were not created by the Council, but were without Council consent put up by vendors.
The Council formalised the stalls on Tokyo way market and the same were given offer letters upon payment of prescribed fees.

The Council was just waiting for electricity connection by ZESCO in order to commence trading activities in the area.

However, the shops around Dedan Kimathi Road and the fly over bridge were all built without the Council Consent.
As soon as the engagement over vending was completed with all stake holders, the illegal shops would have to be reviewed with only those that met minimum 262 standards to be regularised and those that would not would be removed.

The Council would ensure that in future it engaged all stakeholders especially traders in order to sensitise them to follow the laid down procedures in the acquisition of land and the procedure to follow in developing the acquired pieces of land.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to await a progress report on the matter.

ii.

Failure to Regulate Street Vending It was submitted that street vending was allowed by the Government through the Ministry of Local Government and Rural Development, sometime in 2019 and started with Lumumba Road.
However, along the way vending had spread to all parts of the Central Business District.

The Council had taken an inventory of all empty stands in Council markets in order to make room for those on the streets.

The Council was in constant touch with the Ministry of Local Government and Rural Development who were engaging stakeholders affected by the street vending.

The Council was working on creating more trading spaces in order to accommodate more traders.
The next project the Council was working on in partnership with the private sector was the redevelopment of stands on Munyaule market, next to the City Market in order to create more trading spaces for traders currently on the streets.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to await a progress report on the matter.
f. Management of Local Government Equalisation Fund It was submitted that the Mini Civic Centres had not been completed due to the expiration of contracts as a result of the effluxion of time.

The Council under Minute number E and ID/107/11/22 resolved to complete the Mini Civic Centres in lots.

The first lot was comprised of Kabwata, Matero and Kanyama Mini Civic Centres.
The following contractors had been approved and engaged by the Council to complete the remaining works at the Mini Civic Centres; 263 S/N CONTRACTOR CONSTITUENCY Chacycan Enterprise Limited Kanyama Constituency CONTRACT SUM 1,761,065.60 DELIVERY PERIOD 12 Weeks Jamcho Trading Limited Matero Constituency 2,022,310.86 12 Weeks 1 2 The Procurement Committee was yet to conclude on the Kabwata Mini Civic Centre.
The Council had since reserved a sum of K1,500,000 in its projects account for the completion of the three Mini Civic Centres.

Further, the Council would finance the remaining costs from the 20 per cent capital component of the Local Government Equalisation Fund.

The Council would ensure that all mini civic centres were completed by the end of the first quarter of 2024, in order to provide the required municipality services.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to await a progress report on the matter.

Management of Constituency Development Fund Delayed Implementation of Projects g. i.
It was submitted that the two projects were delayed in implementation because the amounts allocated to each project were far less than the required amounts for the projects to be undertaken.

The process of allocating additional funding delayed and was only approved in the third quarter of 2022.

The Council had advanced in the procurement process for the two projects with the works anticipated to commence in the first week of April 2023.
The Council would ensure that all projects were adequately funded and implemented within the agreed timelines.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to await a progress report on the matter.

ii.
ii.

Construction of a Clinic in Libala Ward It was submitted that the Libala Clinic Project had delayed to be completed due to contractual issues with the contractor.

Chessfield General Dealers was terminated by the Council due to delays by the contractor to finish the works and there subsequent abandoning of the site.

The Council commenced the process of engaging a new contractor and was at procurement stage.

The Council anticipated having a contractor on site by April 2023.
The Council would 264 always ensure that contractors adhered to the stipulated timelines and would not hesitate to terminate and blacklist all contractors that delayed works unnecessarily.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to await a progress report on the matter.

h. i.
h. i.

Management of Liabilities Failure to Remit Statutory and Other Obligations It was submitted that the Council was owing statutory bodies amounts in excess of K971,644,715 due to liquidity challenges.

Following the approval of the Council’s 2019 Main Valuation Roll on 6th January, 2023, the Council had entered into payment plans with the various statutory bodies and had committed to be paying the current obligations while servicing the historical debt.
Council has also proposed debt swaps with the various statutory bodies such as NAPSA, Zamtel, ZESCO, ZRA and LASF.

The latest position on statutory debt was as follows; No.
Institution ZRA-PAYE NAPSA LASF ZRA-VAT ZCTU MADISON GENERAL NHIMA MADISON LIFE ZAMTEL LWSS Co ZESCO NATSAVE Total as Balance 31.12.2021 K 163,949,819 761,943,082 4,092,110 24,428,303 765,398 591,473 4,059,022 4,119,031 1,022,394 667,107 3,094,397 45,577 971,644,715 at Payment plan towards debt liquidation 100,000 250,000 250,000 0 50,000 50,000 480,000 250,000 Debt swap 100,000 Debt Swap 0 Balance as at 31.12.2022 108,644,858 1,480,963,747 53,456,974 496,814 591,473 666,941 4,119,031 0 8,578,282 0 1,657,518,120 Given the final Award that had been given to the Lusaka City Council, the Council would ensure that payments as salaries at gross was implemented in the Second quarter of the year 2023 and that all arrears for the Financial year 2023 are paid.
Further the Council will liquidate the historical debt in line with the approved debt liquidation plan for the year 2023.

265 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to await a progress report on the matter.
Failure to Settle Staff Obligations The Council had a plan of liquidating terminal benefits by committing to pay atleast K6,000,000 per year towards Terminal benefits and paying Leave travel benefits as and when employees proceeded on leave through the payroll.

This arrangement had helped the Council maintain a harmonious relationship with its retirees over the last four years.

The latest position on staff obligations was as tabulated below and included the staff that retired; No.
Institution 1 2 3 Long Service Bonus Leave Travel Benefits Terminal Benefits Total Balance as at 31.12.2022 18,209,406 0 16,126,760 34,336,166 The Council would ensure that all liabilities were paid in accordance with the 2023 Debt liquidation plan.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to await a progress report on the matter.
Luwingu Town Council Paragraph 37 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K13,695,772 against which amounts totaling K15,549,184 were received and generated resulting in a positive variance of K1,853,412.

See table 1 below.
See table 1 below.

266 Table 1: Budget and Income In addition, amounts totaling K2,169,898 were brought forward from the previous year bringing the total funds available to K17,719,082.

Management Response Local Taxes The collect of local taxes was mainly affected by the second wave of COVID-19 where a number of business houses scaled down.

The Local Authority had continued to engage the rate payers through various forums like community meetings and local radio programmes.
Further a grace period had been given to all rate payers after which legal action would be taken.

In an effort to increase compliance levels, The Local Authority would take legal action by engaging Bailiffs once the grace period given expired.

Fees and Charges This was affected by external factors where Council had no direct control.
Some of them being: i. the irregular number of busses and vehicles that loaded from the bus stations, from which Bus station fees were to be collected; low demand on hire of Council transport; low performance regarding building inspections due to the lack of Building Inspectors; low compliance regarding Site rentals; and the non-completion of the ten low cost houses equally affected the budgeted revenue.

ii.

iii.

iv.
ii.

iii.

iv.

v. In an effort to improve the revenue performance, the Council had come up with a revenue monitoring tool were monthly targets were set and performance reviewed on a monthly basis.
Further, stakeholder engagements would continue to be done so as to close the information gap 267 No.Source of Funds Budget K Income K Variance K Locally generated1 Local taxes441,456 261,698 (179,758)2 Fees and Charges1,035,550 376,701 (658,849)3 Licences29,320 28,598 (722)4Levies444,836 140,829 (304,007)5Permits64,860 94,494 29,634 6Commercial Venture200,000 29,693 (170,307)7Other Receipts991,750 4,384,363 3,392,613 Sub Total 3,207,772 5,316,376 2,108,604 National Support8Local Government Equalisation Fund8,688,000 8,522,808 (165,192)9Costituency Development Fund 1,600,000 1,600,000 - 10Other Grants200,000 110,000 (90,000)Sub Total 10,488,000 10,232,808 (255,192)Total 13,695,772 15,549,184 1,853,412 that had been there.
Additionally, in the absence of the Building Inspector, the Council had attached the works foreman from works department to be conducting the inspections.

Licenses The 4 percent under collection was attributed to temporal closure of some business houses at the peak of the farming season.

In an effort to improve the revenue performance, the Council had come up with a revenue monitoring tool were monthly targets were set and performance reviewed on a monthly basis.
Further, stakeholder engagements would continue to be done so as to close the information gap that had been there.

Levies This was affected mainly by failure to capture farmers as they sold their farm produce to either Food Reserve Agency and/or the Briefcase buyers.

The Council Management had included in the 2023 Budget an allocation of K10,000 for the construction of an additional barrier at a strategic point.
In order to ensure that levies were collected, the Council Management would ensure that the two collection points, that were the Bus station and the Check point were regularly monitored; and the newly proposed collection point was operationalised before 30th April, 2023.

Permits The Council Management wishes to submit that it collected above target due to the increase in the number of business activities.

The data base had been updated to accommodate the new traders.
In an effort to ensure collections were within the budget, the Council would ensure that the data base was updated before the annual budget was prepared.

Commercial Venture The Status of the Commercial Venture (Chulungoma Guest House) had not been competitive hence not being able to realise the planned contribution.
The Local Authority had included the rehabilitation of Chulungoma Guest House in the 2023 budget and works budgeted at a cost of K600,000 were scheduled to be completed by 30th September, 2023 so as to improve its face value.

In an effort to improve the revenue collection from the commercial venture, the Council Management would always ensure that regular maintenance works at Chulungoma Guest House were done.
Other Receipts The amount captured in the report included funds received from Electoral Commission of Zambia amounting to K4,321,684 for the by election in Lukutu Ward.

Otherwise the budget line 268 was adversely affected by the delayed land acquisition process from the Traditional Authority.

The land was officially offered to the Local Authority by the Chief in 2022.

Thus, rendering the 2021 actual budget over estimated on this vault.
The Local Authority had also realised that there had been overdependence on traditional revenue sources without thinking outside the box.

For this reason, the Council Management had identified new revenue streams and decided to invest in the following: i. procurement of an Industrial Block making machine; ii.

Completion and operationalisation of a truck parking bay; iii.

Construction and operationalising the piggery and poultry ventures; iv.
Further, the Council Management had resolved to acquire land for commercial farming purposes.

This was to take advantage of the favorable climatic condition of the area which was suitable for farming.

In an effort to improve the revenue performance, the Council Management would continue to identify new revenue streams and regularly monitor and evaluate the performance of the existing revenue points.
National Support The under collection was due to recoveries made at source for Local Authority Superannuation Fund (LASF), Zambia United Local Authorities Workers Union (ZULAWU) and others.

The Ministry of Local Government and Rural Development was being engaged through different fora.

In an effort to ensure budgeted national support was received, the Council would seek the indulgency of the Ministry of Local Government and Rural Development.
Committee’s Observations and Recommendations The Committee notes the response by the Accounting Authority on the budget and income; and urges the Council to be realistic when preparing the budget to enhance credibility.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.

Operational Matters i.


Failure to Develop the Integrated Development Plan It was submitted that Luwingu Town Council commenced the preparation of the District Integrated Plan through a contracted Consultant during the implementation of the European Union funded project “Enhancing Local Government Capacity for Development (ELGCD)”.

However, due to some challenges experienced concerning the layout of the overall document the Local Authority delayed in the production of the Document.
Additionally, by the time the approved format was agreed on, the Seventh National Development Plan (7NDP) on which 269 many of the programmes and interventions were based on had reached its expiration date.

An implication that there was need to align the Integrated Development Plan to the Eighth National Development Plan which was launched in 2022.

Following the close of the project, Luwingu Town Council had: i.
Conducted consultation meetings to align the draft District Integrated Development Plan to the Eighth National Development Plan and also attend to information gaps that were observed.

Submitted the Draft Document to the Provincial Planner who had responded with the comments.

ii.

iii.

Publicised the availability of the draft IDP for public scrutiny and comments.

To address this query, after the lapse of the 60 days advertisement period, the Draft IDP would be presented to Full Council for adoption.
Thereafter, it would be submitted to the Ministry of Local Government and Rural Development for consideration and approval.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to ensure that the IDP is put in place and operationalised without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Management of Markets – Failure to Control and Manage Markets It was submitted that the Management of the market by the local community could be attributed to the dual tenure system - Customary Land Tenure and Leasehold Tenure - that existed in Luwingu.

The market not falling within the township boundary was the basis on which the traditional leadership said they were to operate the market.
The Local Authority had received formal communication from His Royal Highness Chief Chipalo stating that Chipalo Royal Establishment had handed over the Management of Kamumango Market to Luwingu Town Council.

The same communication had also authorised the Local Authority to commence with the acquisition and conversion of tenure of the Land on which the market in question sat.
To address the poor Solid Waste management at Kamumango, the Local Authority had included the said market on the weekly waste collection schedule.

Further, a budgetary provision of K322,736, to construct a waterborne toilet, had been made in the 2023 Budget.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

iii.

Poor Management of the Dumpsite It was submitted that the managements’ inability to manage the waste could be attributed to a 270 grader being defunct for a while due to the unavailability of a spare part from the suppliers.

The garbage at the dump site had been covered.

The Council would at all times adhere to the ZEMA regulations.

 The dumpsite was not fenced for protection from access by unauthorised persons.
Management Response It was submitted that the managements’ inability to manage the waste could be attributed to the liquidity challenges faced by the Council.

The Council management had included in the 2023 budget a provision of K30,535 for maintenance of damp site which included fencing the dump site for protection from access by unauthorised persons.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iv.

Lack of Fire fighting and Prevention Services The Council was unable to have fire fighting equipment due to liquidity challenges that the Council faced.
The Council had made a budget provision in its 2023 for the procurement and installation of fire fighting equipment which would be procured after the Budget was approved.

In an effort to avoid similar situations, the Council would continue to endeavor and ensure that safety precautions were given priority at all cost.

Committee’s Observations and Recommendations The Committee bemoans the situation and urges the Accounting Authority to prioritise the procurement of fire fighting equipment without delay.
The Committee will await a progress report on the matter.

c. Management of Payroll and Other Staff Related Matters i.

Failure to Fill Vacant Positions It was submitted that the mandate to employ and deploy staff was vested in the hands of the Local Government Service Commission.

The following actions had been taken: i. ii.


the vacancy report had been sent to the Local Government Service Commission; a Chief Human Resources Officer had been deployed to the Council to replace the Chief Administrative Officer who was transferred to Lusaka City Council.

Additionally, a Land Surveyor had been deployed by the Local Government Service Commission; and 271 iii.
the Human Resource Committee had been established which was responsible for the recruitment of Fire fighters and Registry Supervisor.

The Council would continue to engage the Local Government Service Commission and the Human Resource Management Committee to employ and fill vacant positions.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

ii.

Failure to Recover Salary Advances It was submitted that the matter was raised and resolved by the Auditor during the verification exercise.

The signed status report from Auditor General’s Office to show that the matter was resolved was available for evidence.

Committee’s Observations and Recommendations The Committee resolves to close the matter.

iii.
iii.

Failure to Confirm Officers It was submitted that the Council had no direct control on the confirmations apart from making recommendations to the Local Government Service Commission.

Out of the five officers, i. ii.

Feedback on two of the officers had been received that they needed to submit full Grade the Local Authority had received the confirmation for One officer.

12 certificates.

iii.

The Council was still awaiting response for the remaining two officers.
In an effort to avoid similar occurrences, i. the Local Authority would ensure that timely submissions of the confirmations were done and follow-ups made; and ii.

officers without requisite qualification had been encouraged to upgrade their qualifications.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

d. Procurement of Goods and Services i. Irregular Procurement of Receipt Books from Private Institution It was submitted that the matter was raised and resolved by the Auditor during the verification 272 exercise.

The signed status report from Auditor General’s Office to show that the matter was resolved was available for evidence.

Committee’s Observations and Recommendations The Committee resolves to close the matter.
Failure to Refund Borrowed Funds It was submitted that the Council delayed in paying Lupososhi Town Council due to Liquidity challenges experienced at the time.

The payment to Lupososhi Town Council was made in full and the final payment was done on 1st April, 2022.

The payment vouchers, receipts and a letter from Lupososhi Town Council confirming that the payments were all done in full were available for evidence.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
e. Management of Commercial Ventures i. Chulungoma Guest House It was submitted that the mentioned huge crack on the western wing of Chulungoma Guest House was planned for under the 2022 budget to be implemented in the third quarter starting with the kitchen area as well as working on cracks that had developed on the western wing due to differential settlement in the foundation.

The meeting, according to Minute No.


PWIMSAFC 270/10/22, resolved to shift the maintenance works on Chulungoma Kitchen to the 2023 budget in an effort to complete the rehabilitation works on the entire Guest House.

It was also submitted that the Council had been working on the Guest house in phases and remained committed to see the rehabilitation works completed.
The first phase of rehabilitation works was the complete overhaul of the water reticulation network for the entire Guest House which was done in line with the 2020 budget and the rehabilitation of five rooms out of the twenty-five rooms available at the Guest House in line with the 2021 budget.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

ii.

Isandulula Guest House Through a Council resolution Minute No HESSC 25/07/20 the Council resolved to close the 273 Guest House due to its deplorable state and falling short of the basic requirements of a premise as outlined in the Public Health Act, Chapter 295 of the Laws of Zambia and the Hotels Act, Chapter 153 of the Laws of Zambia.

The Guest Houses’ structural integrity was compromised as it had outlived its usefulness.
The walls were on the verge of collapsing and the substructure was crumbling.

Additionally, the Liquidity challenges that the Local Authority faced prevented it from maintaining the said guest house.

Maintenance works on the structure proved more costly and demolishing the structure to pave way for better investment was under consideration and had been presented to the Finance, Evaluation, Commercial undertaking and Human Resources Committee through Minute No FECUHRC 349/02/23.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
f. Management of Assets - Failure to Maintain Council Shops It was submitted that the Tenancy agreements on all the rented Council properties lacked the provision that should have stipulated the responsibilities falling on the tenant should there be a damage to these properties.

As such, Council properties remained unmaintained in spite of being occupied by tenants.

The Committee was informed that the Council had worked on the shop as it was scheduled to be worked on in the 2022 budget.
274 Tenants in all the Council buildings had been given tenancy agreements that clearly stipulated that damage to the buildings were the sole responsibility of the tenant to attend to throughout the entire period of the tenancy agreement.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
g. Management of Local Government Equalisation Fund - Misapplication of Capital Projects Funds It was submitted that the funds reported were borrowed to facilitate recurrent expenditure which included the orientation of Councillors in Mpika.

However the funds had not been paid back as at the time of Audit due to liquidity challenges.
The Committee was informed that K100,000 had since been paid back leaving a Balance of K336,593 and would ensure that payments to clear the outstanding balance were made by 30th September, 2023.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

h. Management of Constituency Development Fund i.


Failure to Implement Approved Projects It was submitted that the delay to commence the implementation of the project was affected by the political atmosphere leading to and after the General Election.

Further, the Ministerial directives on halting of new procurement processes also had an effect.

275 The Committee was informed that the 2021 CDF project implementation commenced, on 26th May, 2022.

Nine of the eleven projects were completed.


The two uncompleted projects were re- scoped to the construction of a staff house at Bulambo and construction a staff house at Sokontwe.

The recommendation to re-scope the two projects was necessitated by severe structural failures that developed on the structures following the rainy season.

A request to re-scope the said two projects was made to the Ministry of Local Government and Rural Development on 6th June, 2022.

Table 1.

S/N Project Name 1.

2.


Completion of Staff House at Sokontwe Primary School in Mwelawamango Ward Rehabilitation of Staff Houses at Bulambo Primary School in Isansa Ward Start Date Status (Percent) 0 Contract Sum (K) 175,994 10 167,986 23rd January 2023 Status the offer award was of The withdrawn first from contractor due to failure to agree on the contract amount.

A new contractor had been awarded the contract which was signed on 24th February, 2023.

The contract was available for evidence.


The contractor had mobilised and was working on the substructure.

It was submitted that the Council was committed to ensuring that projects were implemented in time without any delays.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Management of Liabilities i.

Failure to Remit Statutory and Other Obligations It was submitted that the accumulation of debt had been due to the low liquidity strength of the local authority to pay the statutory obligations in full as it was faced with other competing demands of the Institution.

The Council Management had been made to ensure commitment in reducing the indebtedness in general despite the liquidity challenges faced by the Local Authority.
Additionally, a payment of K3,122.76 had been made towards ZULAWU.

276 In an effort to avoid further accumulation of the debt, the Council Management had been paying the current obligations though it still faced challenges to pay Zambia Revenue Authority.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of outstanding statutory obligations, without delay.
The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to Settle Staff Obligations ii.

It was submitted that the debt had been outstanding for some time due to the low liquidity strength of the local authority.

The Committee was informed that a debt liquidation plan had been put in place to service the outstanding amounts and a monthly payment plan was in place.
The table below showed the reduction in the queried figures.

In order to ensure that there was a constant reduction in the Local Authority’s level of indebtedness, the Council would continue to adhere to the payment plan in place.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of outstanding staff obligations without delay.

The Committee will await a progress report on the matter.
Mafinga Town Council Paragraph 38 1.1 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in 277 No.InstitutionQuaried Amount KAmount Paid KStatus on the Queried Amount K1Councillors Monthly Allowances 106,000 22,000 84,000 2Long Service Bonus 805,700 6,500 799,200 3TerminalBenefits 578,680 244,360 334,320 Total 1,490,380 272,860 1,217,520 amounts totaling K11,763,458 against which amounts totaling K10,605,466 were received and generated resulting in a negative variance of K1,150,971.
See table 1.

Table 1: Budget and Income In addition, amounts totaling K1,897,930 were brought forward from the previous year bringing the total funds available to K12,503,396.

Management Response The Accounting Authority submitted that the negative variance was due to an over-estimation of revenue estimates on certain budget lines such as land development charges, licenses, levies, fees and profit from commercial venture.
Further, the lack of transport to effectively collect revenue in all parts of the district also adversely affected revenue collection.

The Council could not maximise collection of developmental charges even after advertising the plots both on television and print media due to the remoteness of the district and extremely bad road network, making it cumbersome for the would be developers to acquire plots from Mafinga.
The Committee was informed that the Council had since reviewed all budget lines based on the annual performance, with a view to align future estimates accordingly.

Further, the Council had updated revenue database with the help of Local Impact.

The Council had since engaged revenue agents in the wards to focus on improving revenue collection efficiency.
Some of the revenue measures put in place to enhance revenue included: the construction of two fee paying toilets; flexible payment plan for development charges; and engagement of developers through mobile numbers.

The Committee was informed that the Council would endeavour to budget realistically as demonstrated in the 2023 budget estimates and the engagement of revenue agents who would help collect revenue from far flung remote areas.

The Council was also in the process of forming revenue task force.
278 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee resolves to close the matter subject to audit verification.

Operational Matters Environmental Management- Failure to Create a dumpsite b. i.
The Accounting Authority submitted that this activity was not budgeted for in the year under review and Mafinga Town Council was a Government aided institution which depended heavily on Local Equalisation Fund for capital projects.

However, regardless of the challenges, the Council had engaged their Royal Highnesses on the allocation of land outside the main trading areas.

An area needed to be surveyed by the Office of the Surveyor General and then submitted to ZEMA for approval.
The Committee was informed that the Council had invited technocrats to advise on modalities of setting up a dump site.

In this regard, the Provincial Planning Unit was scheduled to be in the district in the first quarter of 2023, on the same matter.

The Committee was informed that the Council was committed to the construction of a dump site and as such, the activity had been budgeted for in the 2023 budget.
Committee’s Observations and Recommendations The Committee finds it unfortunate that the Council had not designated an area as a dumpsite, pausing danger to the environmental health of the community and gloss violation of the provision of the Environmental Management Act, No.

12 of 2011.

The Committee, therefore, urges the Accounting Authority to ensure that the dumpsite is designated and secured without delay.

The Committee will await a progress report on the matter.
Failure to Develop Integrated Development Plans ii.

The Accounting Authority submitted that the IDP was not budgeted for due to financial constraints.

The IDP formulation was at stage two with a Planning Survey and Issues draft Report compiled and submitted to the Planning Authority.

The Council would endeavour to have an IDP in place as the Council had budgeted for it at the cost of K163,787.16.
The Council’s primary focus was to complete the draft IDP document before the end of the second quarter of 2023.

Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council is operating without an Integrated Development Plan and wonders how the Council was coordinating development in the district, in the absence of the Plan.
In this regard, the Committee urges the Accounting Authority to, as a matter of urgency ensure that the IDP is developed and operationalised without delay.

The Committee will await a progress report on the matter.

279 Management of Payroll and Other Staff Related Matters c. i.

The Accounting Authority submitted that the positions were vacant as a result of delay by the Local Government Service Commission to fill the positions.
Failure to Fill Vacant Positions The Committee was informed that the Council recommended to the Local Government Service Commission to down size and restructure the workforce so that it could have room to deliver services to the community by cutting off some emoluments costs as it solely depended on the Local Government Equalisation Fund, the situation which had much potential to cripple the operations of the Council.
In the Council Meeting held on 19th July, 2019, under minute Number FHRGP/34/07/19 of the Finance, Human Resource and General Purposes Committee which was adopted under Council Minute Number C.19/10/19, recommended to the Local Government Service Commission to have some positions in the Division 1, 2 and 3 categories of officers frozen and only remain with key but critical positions.
Regarding the position of Chief human Resource Officer, the Council resolved that if it retained the position of Chief Administrative Officer, the Chief Human Resource Officer position must be frozen and the retained be paired with the Human Resource Officer and if it retained Chief Human Resource Officer, it should be paired with the Administrative Officer.
Therefore, on that position the Local Government service Commission upheld the Resolution of retaining the Chief Administrative Officer paired with the Human Resource Officer who reported in July, 2022 and the Chief Human Resource Officer was transferred.

And as of 31st December, 2022, all critical positions that were budgeted for and declared vacant had since been filled by the Local Government Service Commission.
The positions included Human Resource Officer, Mechanic, District Aids Coordination Advisor, Director of Works, Water and Sanitation Coordinator.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for Audit verification.

The Committee, however, resolves to close the matter subject to audit verification.

Failure to Confirm Employees ii.


The Accounting Authority submitted that the unconfirmed positions were as a result of delay by the Local Government Service Commission.
The Local Government Service Commission was mandated by law under Section 16 (1) of the Service Commission Act, No.10 of 2010 to recruit, confirm and transfer within the service; and the Council’s responsibility was to recommend to the Local Government Service Commission for an appropriate action after the successful completion Three months of probation period by those on first appointment or acting period by those on acting appointments.
280 As of 31st December, 2022 the Mafinga Town Council Human Resource Management Committee had confirmed three employees and substantively promoted two in division three category out of the ten cited in the audit report.

The Council recommended those in Division I and II to the Local Government Service Commission for conformation.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for Audit verification.

The Committee, however, resolves to close the matter subject to audit verification.

Management of Assets - Lack of Title Deeds d. The Accounting Authority submitted that the cited assets were built on traditional Land and un- surveyed plots.
The Committee was informed that the Ministry of Lands was engaged through the Office of the Surveyor General to have the buildings surveyed and numbered which was done, to facilitate acquisition of title deeds for the cited Council properties.

The Council had since obtained a title deed of the three Council properties.

Numbered and survey diagrams had been obtained for the three remaining properties which needed to be submitted to Commissioner of Lands for processing of certificates of title.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee, however, urges the Accounting Authority to ensure that all the cited properties are secured with title deeds without delay.

The Committee will await a progress report on the matter.

e. Management of Local Government Equalisation Fund - Wasteful Expenditure on Procurement of a Laptop Computer.
The Accounting Authority submitted that the said laptop was tested when it was delivered and was in working condition, like the other four laptops.

However, at the time of the audit the said laptop had developed a fault.

The Committee was informed that the computer was repaired and was in good working condition and was available for verification.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to take the audit process seriously as it contends that this matter could have been addressed at the time of the audit.

In this regard, the Committee urges the Accounting Authority to avail supporting documents on this matter to the Office of the Auditor General for audit verification.

However, the Committee resolves to close the matter subject to audit verification.
281 f. Management of Constituency Development Fund Query No.

6.1: Failure to complete a 1 x 3 Classroom block at Choma Primary School funded at K 84,586 for completion The Accounting Authority submitted to complete outstanding works was due to the compromised structural integrity of the building, as it was initially started by the community who constructed it up to gable level, using clay mortar.
Upon installation of timber trusses, the building showed signs of weakness which led the contractor to remove the already installed timber trusses, causing the wall on one side to collapse.

the failure that The timber which was removed, as well as the forty-six iron sheets were being stored at the school.
Fig 1: Shows the collapsed wall 282 Fig 2: Shows reconstructed walls from ring beam level Fig 3: Shows a wall on one end constructed with clay mortar 283 Fig 4: Shows an inside wall reconstructed with cement mortar Fig 5: Shows timber removed from the structure 284 Fig 6: Shows the iron sheets at the school The Committee was informed that the Council through the CDF Committee had recommended that the project be considered for new construction of a 1 X 3 CRB, using the 2022 CDF.
Committee’s Observations and Recommendations The Committee bemoans the wastage of public resources due to poor workmanship and lack of project monitoring and supervision.

In this regard, the Committee urges the Accounting Authority to enhance the project monitoring mechanisms, in place, in order to avoid such wastage of public resources.

The Committee also urges that the project must be completed without any further delay.

The Committee will await a progress report on the matter.

Query No.
Query No.

6.2: Failure to complete a 1 x 3 Classroom block at Muleya Primary School funded at K 43,369 for rehabilitation The Accounting Authority submitted that the project under review experienced a blown off roof at the time the contractor was on site.

This unfortunately, led to works stalling, as the contractor had to wait for DMMU to respond to the disaster which had occurred.
The Committee was informed that the Council engaged the contractor to go back to site after the DMMU response, to complete the works which were outstanding.

It was submitted that the fitting of doors, fitting of mortice locks, painting and beam filling of the classrooms were done.
285 Fig 7: Shows the front of the 1 x 3 CRB Fig 8: Shows the side of the 1 x 3 CRB 286 Fig 9: Shows the rear of the 1 x 3 CRB Fig 10: Shows the inside of the 1 x 3 CRB Committee’s Observations and Recommendations 287 The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

Query No.
Query No.

6.3: Failure to complete Nsami Rural Health post funded at K111,550 for construction The Accounting Authority submitted that the failure to complete outstanding works was due to inadequate CDF Funding to the project, which emanated from under costing of the BOQ.

The Committee was informed that window metal works and internal plastering had been done.
The Council through the CDF Committee had submitted a material schedule and recommended that the project be funded to completion under the 2022 CDF allocation as guided in the Constituency Development Fund Act, No.

11 of 2018.
11 of 2018.

Fig 11: Shows the inside of the clinic with wall and floor finishes 288 Fig 12: Shows the inside of the clinic with window frames Committee’s Observations and Recommendations The Committee urges the Accounting Authority to put measures in place that will enhance the management of projects at the Council.

The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.
Management of Liabilities Failure to Remit Statutory and Other Obligations g. i.

The Accounting Authority submitted that the failure to remit Statutory Obligations was due to the liquidity problems faced by the Council as there were limited revenue generation sources.

The Committee was informed that payment plans had since been structured with the statutory bodies and the Council was committed to settling the arrears as could be seen in the table below.
Council had reduced debt from K5,595,997 to K3,613,380.70.

For NAPSA, the Council was paying the latest amounts and the K5,000 towards the arrears.

K5,000 was being paid to ZRA every month as per the Memorandum of Understanding and for ZULAWU, the K13,186.34 was for ZCTU .

The rest of the statutory obligations balances had been cleared.

289 No.
Details ZRA NAPSA LASF MADISON FIRESUZ NHIMA ZULAWU Total Payments to Date (K) Balance (K) 1,585,643.62 190,566.37 140,129 54,335.65 1,854,842.38 1,744,985.63 00.00 366.35 Amount K 3,440,486 1,935,552 140,129 54,702 11,328 13,800 5,595,997 11.328 613.66 1,982,526.30 3,613,380.70 00.00 13,186.34 The Accounting Authority submitted that the Council had put up plans to liquidate the arrears by paying monthly commitments, at the same time liquidating the latest obligations as and when they fell due to avoid debts accruing.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the offsetting of the debt pertaining to statutory and other obligations as not doing so was in violations of workers Conditions of Service and regulations.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Settle Staff Obligations The Accounting Authority submitted that the failure to settle Staff Obligations was due to the liquidity problems faced by the Local Authority as there were limited revenue generation sources.

The Committee was informed that the Council was committed to offsetting the outstanding amounts as could be seen from the table below.

The Council paid a total sum of K399,266.47 during the year under review leaving a balance of K173,948.53.
The Council was equally committed to the payment of the outstanding obligations through structured payment plans of K33,000 towards salary arrears every month.
No Details 1 2 Settling In Allowance Salary Arrears Total Amount K 33,521 539,694 573,215 to Date Balance Payments (K) 33,521 00.00 173,948.53 173,948.53 365,745.47 399,266.47 290 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the offsetting of the debt pertaining to salaries and other obligations, since not doing so was in violations of workers Conditions of Service.

The Committee will await a progress report on the matter.
Mazabuka Municipal Council Paragraph 39 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totalling K36,608,673 against which amounts totalling K32,848,244 were received and generated resulting in a negative variance of K3,760,429.

See table 1 below: Table 1: Budget and Income In addition, funds amounting to K5,502,542 were brought forward from the previous year bringing the total funds available to K38,350,786.
As at 31st December, 2021 amounts totalling K37,107,729 had been spent leaving a balance of K1,243,057.

Management Response Local Taxes It was submitted that included in local taxes were Government properties which were not paid for.

The bills of all Government properties had been submitted to the Ministry of Finance and National Planning, amounting to K3,268,821.87.

Management would continue to engage Central Government to settle outstanding balances on all Government properties in the District.
291 No.Source of Funds Budget K Income KVariance KLocally Generated1Local Taxes12,351,32211,267,865(1,083,457)2Fees and Charges5,556,2623,690,989(1,865,273)3Licences872,370763,084(109,286)4Levies397,809303,151(94,658)5Permits1,246,9841,085,331(161,653)6Commercial Venture- 43,29743,2977Other Receipts177,492164,019(13,473)Sub Total20,602,23917,317,736(3,284,503)National Support8Local Government Equalisation Fund12,566,434 12,152,708(413,726)9Constituency Development Fund3,200,000 3,200,000- 10Other grants240,000 177,800(62,200)Sub Total16,006,434 15,530,508(475,926)Total Income36,608,67332,848,244(3,760,429) Fees and Charges It was submitted that the regularisation of Changa Changa compound was included in the budget, but the programme did not take off because sub division and numbering of the area was not done by the Ministry of Lands and Natural Resources.
It was submitted that follow up had been made with the Ministry of Lands and Natural Resources on the subdivision and numbering of Changa Changa plots and still waiting for response.

It was submitted that the local authority had continued following up with Ministry of Lands and Natural Resources, with regard to subdivision and numbering of the Changa Changa plots (Farm No.
295A) Licenses, Levies and Permits It was submitted that some companies did not resume operating in 2021 after they had closed due to the COVID-19 pandemic.

It was submitted that revenue collection had been intensified through the formation of the Task Force as well as continuous sensitisation of the community through radio announcements, social media and public address system.

Management would continue to engage the business community on payment of licenses, levies and permits.
Commercial Venture It was submitted that the Truck Inn Bay started operating earlier than it was anticipated during the budgeting period.

The Committee was informed that all the commercial ventures had been budgeted for, in the 2023 budget.

The collection of revenue would continue being intensified in the preceding financial year.

Other Receipts It was submitted that the local authority had budgeted to collect funds from the ZESCO Way Leave contract which however, was not awarded to the Council in 2021.
It was submitted that ZESCO Way Leave would no longer be budgeted for.

Local Government Equalisation Fund It was submitted that the Local Government Equalisation Fund was not received in full due to deductions at source such as LASF, union contributions and insurance for the fire engine.

Management had continued engaging the Ministry of Local Government and Rural Development to increase the Local Government Equalisation Fund as it was not sufficient for capital projects and operations.
The Committee bemoans the failure by the Council to collect revenue as budgeted and urges the Accounting Authority to put measures in place that will enhance the collection efficiency, especially of locally generated revenues.

The Committee also urges the Accounting Authority to ensure that the Ministry of Lands and Natural Resources is re-engage to expedite the numbering and sub-division of land in Changa Changa, without delay.

The Committee will await a progress report on the matter.

292 b.
292 b.

Operational Matters i.

Environmental Management Management of the West Villa Dumpsite  Contrary to the ZEMA Licence for dumpsite management, the Council did not compact or cover the waste with a layer of soil but instead waste was being burnt thereby exposing the community to health hazards.

Management Response It was submitted that the compaction of waste had been a challenge due to lack of equipment and inadequate of resources to hire the equipment.
It was submitted that the Council through Constituency Development Fund (CDF), procured equipment which included a TLB, Tipper Truck and a Compactor, which would also be used for solid waste management.

(Compacted Dumpsite) Equipment had since been procured through the CDF which was being used for routine management of the dumpsite and, the compaction and lining of the dumpsite with gravel.
Committee’s Observations and Recommendations The Committee urges the Accounting authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter  The dumpsite was not fenced for protection from access by unauthorized persons.

Management Response It was submitted that the Council had inadequate funds to fence the dump site at the time of audit.
It was also submitted that the dumpsite had since been fenced and there was restricted access.

293 (Picture of fenced dumpsite) Management would continue to maintain the dumpsite and enhance security by placing a Security Guard and Dumpsite Attendant to man the place.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and desist from taking action after the audit process.
The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter Lack of Receptacles at Nakambala Market  It was submitted that this was due to inadequate resources to collect and purchase waste collection equipment and construction of a refuse bay.

The local authority was in the process of constructing a refuse bay.
The Council procured, through the Constituency Development Fund (CDF), equipment which would be used for solid waste management.

The local authority and the community would endeavor to procure skip bins and a skip truck through the 2023 Constituency Development Fund (CDF).

Committee’s Observations and recommendations Committee bemoans the poor management of the waste at the market by the Council and urges that the Council desist from violating the solid waste management regulations with impunity.
In this regard, the Committee urges that waste bays be put in place without delay.

The Committee will await a progress report on the matter.

 Failure to Collect Waste - Mbana Health and Sanitation Co-operative Society Limited It was submitted that the residents in that community were refusing to register and pay waste collection fees to the franchise.
The Local Authority engaged the non-compliant community in a 294 series of meetings to sensitise them on the provision of the law and the Local Authority cleared the garbage that was dumped indiscriminately.

(Community review meeting on refuse Collection) 295 (Waste Being Collected in Appollo) (Cleared ZIAH Road) The Council would continue monitoring the performance of the franchise to ensure compliance.
Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter ii.
Failure to Provide Protective and Safety Clothing It was submitted that this was due to inadequate resources to procure tunics and other protective equipment for fire officers.

It was also submitted that procurement of protective clothing for fire 296 officers was being done in phases and so far the Council had started with the procurement of thirty combats and thirty pairs of boots as budgeted in 2022 budget.

Further, Management had budgeted to procure tunics under the 2023 budget.
The Local Authority would continue to procure protective clothing for all frontline workers such as cleaners, Council Police, Grave Diggers, among others in the 2023 budget.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and ensure that the fire officers were bought the requisite protective clothing without delay.

The Committee will await a progress report on the matter.

iii.
iii.

Accounting for Revenue - Failure to Collect Revenue Property Rates It was submitted that there was resistance on the part of rate payers due to the new figures assigned to their properties in the new valuation roll which was introduced in 2020.

The local authority conducted sensitisation of rate payers and encouraged them to pay as it was a legal requirement.

Further, a sheriff was engaged to recover from defaulting rate payers.
The local authority would also ensure that rate payers were continuously engaged and continue to deliver the much needed services to the community so that they remained motivated.

Mast Levy – Topstar It was submitted that the only client that never paid for mast levy was Topstar.

Follow ups with Topstar had been made and were referred to a contract they signed with Zambia National Broadcasting Cooperation (ZNBC) as they claimed that it was ZNBC to pay for the mast levy.
The Local Authority was waiting for a response.

The local authority would ensure that clients continued paying for the mast levy as per contract.

Billboard Fees Management wishes to submit that, the local authority did not collect billboard fees because the billboards were removed to pave way for the rehabilitation of T1 - Chikankata - Mazabuka Road.
The local authority would proceed to seek for a Council resolution to write off the debt for the billboards that were removed during the road rehabilitation period after reconciling the accounts.

Rental Charges – Bus Operators It was submitted that there was resistance to pay by the bus operators.

It was also submitted that four defaulting bus operators had been sued and one had since paid part payment of K11,110.
Further, the local authority had secured Judgments in Default for the four defaulting operators.

The local authority would continue engaging the bus operators to request them to be paying on time to avoid defaulting.

Rental Charges – Leased Properties It was submitted that previous tenants were failing to pay rentals despite several reminders and eviction notices.

It was submitted that reminders and eviction notices were served and some tenants had been 297 evicted.
In view of that, new tenants had taken occupancy of some properties such as the abattoir and contracts signed.

The local authority would continue engaging tenants to request them to be paying on time to avoid defaulting.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to engage all the stakeholders on the matter, relating to Mast levy and ensure that appropriate bills are paid without delay.
The Committee will await a progress report on the matter.

c. Management of Payroll and Other Staff Related Matters i.

Failure to Confirm Officers It was submitted that officers who were due for confirmation were not yet confirmed in their positions at the time of the audit despite recommendations being submitted to the Local Government Service Commission.
It was also submitted that follow up was made with the Local Government Service Commission on 12th June, 2022 and the concerned officers had since been confirmed in their positions.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.
The Committee resolves to close the matter subject to audit verification.

ii.

Employment of Casual Workers It was submitted that the query was as a result of shortage of key critical human resource which was urgently required but the Council lacked financial capacity to employ the said workers on permanent basis at the time of the audit.

The Committee was informed that the contracts for the said group of general workers were not renewed when they expired.
The new officers were engaged, some were offered on permanent basis while others were offered short term contracts.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter d. Management of Assets i.
Lack of Title Deeds It was submitted that the Council had engaged the Ministry of Lands and Natural Resources to 298 number eight unnumbered Council properties.

Further, a search was conducted at the Ministry of Lands and it was found that two properties were already on title, namely; the Civic Centre (Stand No.

325) and the Council Workshop.

The Council also made recommendations for offer of six Council properties to Mazabuka Municipal Council by the Ministry of Lands.
Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter ii.
Failure to Maintain Mazabuka Motel  Motel Rooms  Semidetached Motel Housing Units It was submitted that the non-maintenance of the motel assets was due to lack of resources.

The Committee was informed that Mazabuka Motel was being rehabilitated in 3 phases due to the inflow of the source of funding (20 per cent capital component) and that phase 1 (Bar and restaurant works) had since been completed and would be operational by end of April, 2023.
299 (Rehabilitated Bar and Restaurant at Mazabuka Motel) (Interior of the Rehabilitated Bar at Mazabuka Motel) Further, it was submitted that the remaining two phases would be undertaken with additional financing to be realised from the bar and restaurant.

Management would ensure that the planned renovations were budgeted for and implemented according to the phases.
Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and ensure that the renovation works are treated with a sense of urgency as they were a potential source of revenue for the Council.

The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the completion of renovation works.
300 e. Management of Constituency Development Fund - Delayed Submission of Proposed Projects to the Ministry It was submitted that meetings were not being held to approve the projects in 2021 as the Constituency Development Fund Committee (CDFC) was dissolved ahead of the general elections.

The Committee was informed that the new committee was constituted in September 2021 and the projects were submitted for approval to the Ministry of Local Government and Rural Development.
Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and ensure that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter In addition, four projects which were allocated funds totaling K588,476 had not been implemented as at 30th September, 2022.

See table 3 below Table 3: Unimplemented Projects.


Management Response Construction of Market Shelter Plan 2000- Phase 2 (Mazabuka Central) It was submitted that the CDFC allocated insufficient funds to the project.

The Committee was informed that a request was made to the CDFC to have the project phased and it was granted.

The project would be considered in the 2023 CDF.


The Council would endeavor to advise the CDFC to allocate sufficient funds in line with scopes of work and bill of quantities as stated in the guidelines.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to ensure that the project is completed without any further delay.
The Committee will await a progress report on the matter Drilling and Installation of Borehole at Shimungalu Police Post (Mazabuka Central) It was submitted that the Council had difficulties in finding mud drillers due to the terrain of the area and insufficient funds.
The Committee was informed that the borehole had since been 301 No.ConstituencyProject NameDate of FundingDate of Project ApprovalPeriod Project Delayed (Months)Amount Allocated K1Mazabuka Central Construction of Market Shelter Plan 2000- Phase 230.09.202111.02.202110258,144 2Mazabuka Central Drilling and Installation of Borehole at Shimungalu Police Post30.09.202111.02.20211088,344 3Mazabuka Central Completion of 1x3 Classroom Block at Ngoma Primary School30.09.202111.02.20211093,346 4Magoye Construction of 1x2 Classroon Block at Magoye Research Primary School-Phase 230.09.202111.02.202110148,642 Total588,476 drilled.
Management would endeavor to advise the CDFC to allocate sufficient funds in line with scopes of work and bill of quantities as stated in the guidelines.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter Completion of 1x3 Classroom Block at Ngoma Primary School (Mazabuka Central) It was submitted that the CDFC allocated insufficient funds to the project.

The Committee was informed that the matter of insufficient funds being allocated to the project was reported to the CDFC and had since allocated the required funds.
The Council would endeavor to advise the CDFC to allocate sufficient funds in line with scopes of work and bill of quantities as stated in the guidelines.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to ensure that the project is completed without delay.
The Committee will await a progress report on the matter Construction of 1x2 Classroom Block at Magoye Research Primary School-Phase 2 (Magoye Constituency) It was submitted that the CDFC allocated insufficient funds to the project.

The Committee was informed that the 1x2 Classroom block had been completed under phase 2 funding.
(1x2 CRB at Magoye Research Primary School) The Council would endeavor to advise the CDFC to allocate sufficient funds in line with scopes of work and bill of quantities as stated in the guidelines.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

302 f. Management of Liabilities i.


Failure to Remit Statutory Obligations It was submitted that the failure to settle statutory obligations was due to financial constraints and deployment of more staff by the Local Government Service Commission (LGSC) without matching resources thereby blotting the wage bill.

It was also submitted that: i. Mazabuka Municipal Council Paid ZRA and Central Government contributed towards clearing the debt.
The total amount paid was K14,558,625.50 from January 2022 to December 2022; ii.

NAPSA obtained a consent judgement against the Mazabuka Municipal Council in August 2022 and the Council was consistently paying a minimum K100,000 every month.

As at 09th February, 2023, the Council had paid K516,764.92 A debt swap amount to K 113,953.43 was also done in August 2022; and iii.

Mazabuka Municipal Council Paid LASF K324,557.39.

There were also monthly deductions done at source from the LGEF.
The Committee was informed that Mazabuka Municipal Council would endeavor to fulfill the agreed payment plans and even pay much more when funds became available.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to ensure that the outstanding statutory obligations are cleared without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Settle Staff Obligations It was submitted that the failure to settle staff obligations was due to financial constraints.

The Committee was informed that: i. ii.

iii.

iv.


from January 2022 to December 2022, the Council paid K572,418.92 in Settling in Allowances; from January 2022 to December 2022, the Council paid K402,779.62 in Leave Travel Benefits; from January 2022 to December 2022, the Council paid K205,022.61 in Long Service Bonus; and from January 2022 to December 2022, the Council paid K62,000 in Terminal Benefits.
The Council had budgeted to clear Settling in allowances and Leave travel benefits in 2023 and also paid substantial amounts towards Long Service Bonus and Terminal Benefits.

The 2023 claims would be paid as they fell due, to avoid accumulating more debt.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to ensure that the outstanding statutory obligations are cleared without delay.

The Committee will await a progress report on the matter.
303 Mbala Municipal Council Paragraph 40 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K19,510,809 against which amounts totaling K16,735,015 were received and generated resulting in a negative variance of K2,775,794.

See table 1 below.
See table 1 below.

Table 3: Budget and Income Management Response The under collection of the budgeted amount by K2,775,794 was because of the following: Local Taxes The Council faced a lot of resistance by the rate payers to settle their dues in the election year thereby making it difficult to enforce compliance.
The Council drew a programme to sensitise the rates payers using Radio programmes, Posters, Announcements using Public Address System, and Community meetings to explain the need for them to settle their rate bills for purposes of enabling the Local Authority institute meaningful service delivery programmes in the District.

The sensitisation programmes were conducted in order to mitigate the challenge of resistance by the rates payers in settling their bills.
The Council also resorted to using bailiffs to assist pursue the rate payers pay their arrears for the year under review and the current bills.
304 No.Sources of Revenue Budget K IncomeK Variance K Locally Generated1Local Taxes1,606,537 442,447 (1,164,090) 2Fees and Charges 3,509,524 1,658,230 (1,851,294) 3Licences 41,800 68,617 26,817 4Levies361,648 387,703 26,055 5Permits 241,690 320,972 79,282 Sub Total 5,761,199 2,877,968 (2,883,231) National Support7Local Government Equalisation Fund(LGEF)11,999,610 11,837,047 (162,563) 8Constituency Development Fund (CDF)1,600,000 1,600,000 - 9Other Grants150,000 420,000 270,000 Sub Total13,749,610 13,857,047 107,437 Total19,510,809 16,735,015 (2,775,794) The Council has taken prudent measures to ensure that what was budgeted for was realistic and collectable.
The Council would endeavour to continuously undertake sensitisation programmes using radio programmes on the local radio station and conducting regular community meetings with the stakeholders.

The Office of the High Court Bailiff would also be engaged to enforce the provisions of the Rating Act to enhance compliance among the rate payers.
Fees and Charges The failure to settle billed plot premiums by prospective developers in respect of parcels of land offered to them by the Council and delayed in numbering of plots at Kaseshya Border with Tanzania and at some other locations within the town by the Ministry of Lands made the Council to lose revenue from plot premium charges.

The plot premium charges accounted for K1,722,130 of the budget under this category.
The Council had effected a programme of repossessing offered parcels of land from clients that had failed to pay plot premium charges and allocating to other prospective developers on first come first serve basis.

From the reallocated plots the Council had managed to raise a total of K411,150 received in form of land allocation application fees and plot premiums.
In the same vein the Kaseshya land had since been numbered awaiting funds to pursue the programmes of opening up access roads and relocating people sitting on the numbered parcels of land.

The Council had taken prudent measures to ensure that what was budgeted for was realistic and collectable.

The Council would endeavour to ensure that all successful applicants for parcels of land settled their billed fees on time to enable the Council not lose out on the budgeted revenues.
Licenses The Council collected over and above what was budgeted by K26,817.

The over collection made was as a result of intensifying revenue collection compliance programmes during the period under review through the engagement of the stakeholders and the general public.

The Council also constituted taskforce teams on local revenue mobilisation.
Looking at the measures the Council had instituted to enhance collections under locally generated revenue, in its 2022 budget the Council increased the budget provision under licenses to K149,620 from K41,800 that was budgeted in its 2021 budget.

In its 2023 budget, the Council has made a provision of K170,000 which had since been approved.

The Council had taken prudent measures to ensure that what was budgeted was realistic and collectable.
In the same vein, the Council had intensified its revenue collection programmes to ensure that it achieved the budgeted collection targets.

Levies The over collection made under levies by K26,055 was as a result of the benefits the Council accrued from the grain levy where the shippers of the grain outside the District were being levied on the shipments made.
305 Looking at the measures the Council had instituted to enhance collections under locally generated revenue, in its 2022 budget the Council increased the budget provision under levies to K437,625 from K361,648 that was budgeted in its 2021 budget.

In its 2023 budget, the Council has made a provision of K469,362 which had since been approved.

The Council had taken prudent measures to ensure that what was budgeted was realistic and collectable.
In the same vein, the Council had intensified its revenue collection programmes to ensure that it achieved the budgeted collection targets.

Permits The over collection made under permits by K29,282 was due to the issuing of more permits to conduct business by applicants especially in the second half of 2021 when the Government relaxed certain conditions or regulations imposed on business houses when conducting businesses during the COVID-19 Pandemic period.
Looking at the measures the Council had instituted to enhance collections under locally generated revenue, in its 2022 budget the Council increased the budget provision under Permits to K484,900 from K241,690 that was budgeted in its 2021 budget.

In its 2023 budget, the Council had made a provision of K487,500 which had since been approved.

The Council has taken prudent measures to ensure that what was budgeted was realistic and collectable.
In the same vein, the Council had intensified its revenue collection programmes to ensure that it achieved the budgeted collection targets.

National Support – Local Government Equalisation Fund Council had budgeted to receive K11,999,610 from the Central Government in form of Local Government Equalisation Fund.

However, it only received a total of K11,837,047 during the period under review leading to incurring an under funding of K162,563.
The under-funding was in respect of the deductions made at source that were remitted in form of third party payments to bodies such as ZULAWU, FIRESUZ, ZCTU, LASF and ZSIC (in respect of the Fire Tender insurance premium) by the Ministry on behalf of the Council.

The Council, in constant consultation with Ministry, would ensure that it made realistic provision under the National Support budget line units annual budgets.
Further the Council had to this effect written to the Ministry of Local Government and Rural Development to seek its indulgence to increase the Local Government Equalisation Fund for it to adequately meet its operational commitments and provide meaningful municipal services.

The Council would endeavour to make realistic provision under the stated budget line in consultation with Central Government through the Ministry of Local Government and Rural Development.
Other Grants The over-funding of K270,000 under other grants was as a result of receiving more than what was budgeted.

The Council budgeted to receive K150,000 in form of grant in-lieu of rates in 2021.

The budgeted figure was based on what it received in 2020.

However, the Local Authority received K420,000 thereby having an over-funding of K270,000.

306 The Council, in consultation with the Ministry, would ensure that a realistic budget provision was made under other Grants.
The Council would endeavour to make realistic provision under the stated budget line in consultation with Central Government through the Ministry of Local Government and Rural Development.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be realistic when preparing the budget.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Environmental Management B.

Operational Matters i.

It was submitted that the Council did not fence the dumpsite to protect it from access by unauthorised persons due to liquidity challenges it was passing through.

The Council was in the process of decommissioning the existing dumpsite which was located in the middle of the residential properties and had secured a piece of land in Chief Zombe’s area along the road leading to Zombe Border Post.
A stakeholder’s meeting/sensitisation was held with the community in Zombe Chiefdom and 150 trees were also planted around the dumpsite.

The Council would endeavour to fence the new dumpsite to restrict entry into it and adequate warning signs would be displayed to warn members of the public of the existence of the dumpsite.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that supporting documents on this matter are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Lack of an Integrated Development Plan ii.

It was submitted that the delays in completing the formulation of the Integrated Development Plan (IDP) had been as a result of the financial challenges the Council had been facing.
Looking at its financial challenges, the Council adopted a phased approach in developing its IDP.

Due to the liquidity challenges the institution was facing, a phased out approach in developing the IDP was adopted.

In this regard, the co-ordinates to facilitate land use designated for the formulation of the spatial development framework were picked and draft narration was being reviewed to be aligned with the 8NDP.
To speed up the process of completing the task, the Council had written to the Ministry of Local Government and Rural Development seeking possible funding to undertake the programme.

The Ministry had since positively responded to the request saying that Local Authority would be assisted with a grant in form of grant in-lieu of rates which was still being awaited.

307 The Council would endeavor to follow the process of formulation of IDP exercise as guided by circular no.
MLG/101/13/43 dated 19th May 2020 and would also continue engaging prospective financiers and stakeholders to find required financial resources to undertake the IDP formulation process to its conclusive end.

Management Response The Committee urges the Accounting Authority to expedite the formulation of IDP and ensure that it is operationalised without delay.

The Committee will await a progress report on the matter.

Accounting for Revenue - Failure to Collect Revenue iii.
It was submitted that the heavy resistance by the rates payers to settle their dues made it difficult to enforce compliance more especially that it was an election year whereby management found it very difficult to enforce the provisions of the Rating Act that helped the Council collect its revenue.

In an effort to enforce compliance in collecting the property rates, the Council had sought assistance of the High Court Bailiffs to make defaulters settle their obligations with the Local Authority.
The Council had also mounted vigorous community sensitisation programmes through the local radio station, ZANIS and meetings with stakeholders to educate the public on the need to be compliant in settling their obligation with the Local Authority.
The Council would endeavour to pursue revenue collection programmes that would assist in collecting from the outstanding bills and mount vigorous community sensitisation programmes through the local radio station, ZANIS and meetings with stakeholders to educate the public on the need to be compliant in settling their obligation with the Local Authority.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
C. Management of Payroll and Other Staff Related Matters - Failure to Fill Vacant Positions It was submitted that this arose due to the fact that the Local Government Service Commission (LGSC), who were the employers of all officers serving in Divisions 1, 2 and 3, had not sent officers in the stated positions during the period under review.

The Council through the LGSC managed to have the position of Director Public Health filled.
The other positions that were filled way back were Building Inspector, Senior Health Inspector, Five Health Inspectors, Senior Committee Clerk and a Stores Officer.

Further, on 7th February 2023 the Council made a recommendation to the LGSC to have the Senior Health Inspector promoted to the position of Chief Health Inspector.

308 The Council would endeavour to communicate with the LGSC on all staff related matters.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to Maintain Public Roads D. Management of Assets i.
It was submitted that the Council was coming from the rain season where no major road maintenance works were been undertaken.

However, as at 15th May 2022, road maintenance works had commenced from the roundabout on Independence road, Allan Chilemu and Market Road.
Materials at Market Road The Council did undertake routine maintenance of township roads especially immediately after the rain reasons as repair works easily got ripped off when they were undertaken during the rainy season and looking at the landscape of the District.

In addition the Council was to undertake major road rehabilitation works on Independence Road as advertised in Zambia Daily Mail.
The Council will endeavour to undertake road maintenance works on roads in the Central Business District and its townships.

Committee’s Observations and Recommendations The Committee bemoans the poor state of roads and urges the Accounting Authority to be deliberate about the maintenance of the roads and ensure that the cited roads are prioritised without delay.

The Committee will await a progress report on the matter.
E. Management of Local Government Equalisation Fund - Failure To Reimburse Borrowed Funds It was submitted that the due to critical financial challenges that threatened its service delivery mandate, during the period under review, K2,037,290 was borrowed from the Capital Projects 309 Account to meet its other critical operational needs with a view of reimbursing the Capital Projects account soon when its financial position improved.
The Council faced challenges in the collection of property rates, which formed the second biggest component of the Council’s local revenue budget, due to resistance by the rate payers as alluded to in the preceding sections of the memorandum.
Apart from writing the Ministry of Local Government and Rural Development to seek financial assistance due to the critical financial challenges the Council was facing, the management had intensified revenue mobilisation programmes and was on the ground sensitising members of the public on the need to settle their obligations with the Council and taking steps to seek intervention of the High Court Bailiffs in pursuing the defaulters on all revenue types.
This was with a view of marshalling enough financial resources to reimburse back the borrowed capital funds.

The Council would ensure that the borrowed capital funds were reimbursed by putting in place measures to enhance collection of locally generated revenues.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

F. Management of Constituency Development Fund i.


Failure to Implement Water Reticulation Project It was submitted that despite the payment amounting K15,500 that was made, the water utility company took long to undertake the works of installing the water reticulation system as it was reported that it did not receive the ordered plumbing materials on time as the same were sources from their Head office in Kasama.
The Company was approached and requested to speed up the process of implementing the project before since implemented/completed the project of installing the water reticulation system at Luselwamfumu Village.

rains.
rains.

The water utility company had the onset of the One of the taps and installed prepaid water meter at Luselwamfumu Water Reticulation Project Site 310 The Council would always endeavour to have the engaged contractors under CDF to have the projects works completed in good time to enable the communities start accessing the services the community projects render.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Construction, Completion and Rehabilitation of various Works in Kawimbe Ward (Lot II) i.
Completion of 1x3 School Laboratory at Kawimbe Day Secondary School – Delayed Completion It was submitted that due to insufficient funds allocation to the implementation of the project the same could not be completed in the year of its commencement.

The allocated funds to Lot II which had three separate classroom blocks construction projects amounted to K244,518.

This in essence meant thinly spreading the said allocation among the three big construction projects.
As a result the works planned to be undertaken according to the established BoQs for the projects could not be carried out to completion.

Arising from the incomplete status of the project due to little funding allocated to it, the Council recommended (as guided to prioritise allocation of funds to projects that were near to completion) for additional allocation of funds and got approval from the Minister of Local Government and Rural Development for the project completed.
In this regard, the project was awarded additional K350,000 to have it completed and works were progressing on well.

1 x 3 School Laboratory construction works at Kawimbe Day Secondary School progressing on well The Council would strive to have all community projects that were near completion recommended for additional funding for them to be completed and become ready for use by the community.

Advice had also been given to various stakeholders to ensure that projects funded were from start to completion.
311 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Construction, Completion and Rehabilitation of various works in Mwamba Ward (Lot III)  Construction of 1 x 4 Classroom Block at Mwamba Day Secondary School It was submitted that the project of putting a classroom block at Mwamba Day Secondary School started way back in 2019 when the Council decided to allocate K89,185 to roof a 1 x 4 CRB that was erected by the Mwamba Community.
However, due to the weakness of the superstructure of the building done by the community, it could not hold the roof firmly resulting in it getting blown off by the strong wind.
In this regard, due to the pressure from community to have the classroom block re-roofed, the Council again considered to engage a contractor under CDF to re-roof the classroom block with metallic spider trusses using the 2021 CDF allocation where the project was put in Lot III together with construction of 1 x3 CRB at Kakozya Primary and together were allocated a K178,876 which was definitely not enough for the two construction projects.
As the contractor was about to re-roof the CRB with metallic spider trusses, the superstructure of the 1 x 4 CRB collapsed due its weakness thereby making the contractor not to go ahead with the works of roofing the CRB.

Due to the need for community of Mwamba Ward to have an additional classroom block at Mwamba Day secondary School, the Council allocated K560,000 to construct a 1 x 2 CRB at the school under 2022 CDF allocation and the construction works were progressing on very well.
1 x 2 CRB construction works at Mwamba Day Secondary School progressing on well To avoid poor workmanship as a result of engaging local labourers by community, the Council had fully contracted out the works of putting up the 1 x 2 CRB to a reputable contractor.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges that supporting documents be submitted to the 312 Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

 Construction of a 1x3 Classroom Block at Kakozya Primary School - Delayed Completion It was submitted that due to insufficient funds allocation to the implementation of the project the same could not be completed in the year of its commencement.
The allocated funds to Lot III which had two construction projects amounted to K178,876.

This in essence meant thinly spreading the said allocation between the two big construction projects.

As a result the construction works could not be completed with the allocated funds.
Arising from the incomplete status of the project due to inadequate funding allocated using the 2020 CDF allocation, the Council, through the CDFC, had planned to allocate additional funding to the project using 2023 CDF allocation that was being awaited.
The project could not be prioritised for additional funding in 2021 and 2022 CDF allocations as there were a number of other incomplete community projects that were competing for the same funds on top of newly conceived projects to be executed using the same CDF allocations.

In this regard, the project was put among several others to be appraised to assess the required additional funding using the 2023 CDF allocation and subsequently recommended for approval by the Provincial Local Government Officer.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.
Construction, Completion and Rehabilitation of Various Works in Lwandi Ward (LOT VIII) It was submitted that the Chisenga Rural Health Post staff house completion was put under Lot VIII for Lwandi Ward with an allocated amount of K148,000 in which Lot there were also two other projects namely; Completion of construction works of 1x3 Classroom Block at Isofu Primary School and Completion of construction works of 1x 4 Classroom Block at Chipoka Day Secondary School on request of the Community through the Area Ward Councillor.
Nevertheless, when the field appraisal team comprising CDFC members went on the ground, they established that the staff house structure which was built and roofed by the community with plastering and glazing, putting window and door frames, painting and putting of doors as remaining works was not up to standard and the team felt that it would be waste of Constituency Development Funds if it were allocated with any and recommended that the funds that were to be applied on the structure be varied and re-allocated to the completion of the 1 x 2 CRB at Chisenga Primary School in same Ward.
313 The funds that were to be applied on the completion of the Chisenga Rural health Post Staff house amounting to K61,768 would be varied and reallocated to the to the completion of the 1 x 2 CRB at Chisenga Primary School in the same Ward.

Further.

The funds to be varied and reallocated amounting to K61,768 were not sufficient to fully complete the project.
In this regard, the CDFC, at the time of writing this report, was in process of considering recommending to the Provincial Local Government Officer to allocate additional funds to fully complete the said project using the 2023 CDF allocation as the project was being appraised to assess the level of additional funding.

The Council would endeavour to apply funds on viable projects after due diligence had been undertaken and ensure that community projects were fully funded to completion.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iv.
iv.

Completion and Rehabilitation of Various Works in Moto Moto Ward (LOT IX) It was submitted that due to insufficient funds allocation to the implementation of the project, the same could not be completed in the year of its commencement.

The allocated funds to Lot IX which had two construction projects amounted to K134,174 - Completion of a staff house at Kati Community School and Completion of construction of 1 x 3 CRB Mwambezi Chilino Community School.
This in essence meant thinly spreading the said allocation between the two big construction projects.

As a result the project could not be completed with the allocated funds.

Arising from the incomplete status of the project due to little funding allocated to it in the 2020 CDF allocation, the Council, through the CDFC, had planned to allocate additional funding to the project using 2023 CDF allocation that was being awaited.
The project could not be prioritised for additional funding in 2021 and 2022 CDF allocations as there were a number of other incomplete community projects that were competing for the same funds on top of newly conceived projects to be executed using the same CDF allocations.

In this regard, the project was put among several others to be appraised to assess the required additional funding using the 2023 CDF allocation and subsequently recommended for approval by the Provincial Local Government Officer.
The Council will strive to have all community projects that are near completion recommended for additional funding for them to be completed and become ready for use by the community.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

314 Failure to Remit Statutory and Other Obligations G. Management of Liabilities i.

It was submitted that the Council failed to settle statutory obligations as they fell due, because critical financial constraints it had been facing.

In addition to the narrow revenue base of the Local Authority, it also faced a lot of resistance by the rate payers to settle their dues in the election year thereby making it difficult to enforce compliance.
This subsequently made the Local Authority to find it difficult to make meaningful progress in settling its obligations as they fell due during the financial year under review.

Progressively, amid serious financial challenges, the Council made some strides to lodge partial payments to NAPSA in amounts totaling K166,488.48 in 2022 against the contribution arrears.
In its 2023, the Council drew debt liquidation plans in respect of what it owed its creditors as a way of making steps towards reducing its debt burden.

The 2023 Council budget had since been approved by the Minister of Local Government and Rural Development.

The Council would endeavor to settle its statutory obligations following the set out debt payment plans as its liquidity position improved.
As a way forward, and with the instituted measures to improve its liquidity position, the Council would strive to settle its indebtedness as stated in the debt liquidation plans and strive to settle the existing bills as they fell due.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the settling of outstanding statutory liabilities without delay.

The Committee will await a progress report on the matter.

Failure to Settle Staff Obligations ii.


It was submitted that the Council failed to settle its indebtedness in respect of what it owed its staff as they fell due is due to critical financial constraints it has been facing.

In addition to the narrow revenue base of the Local Authority, it also faced a lot of resistance by the rate payers to settle their dues in the election year thereby making it difficult to enforce compliance.
This subsequently made the Local Authority to find it difficult to liquidate its obligations in respect of what it owed its employees as they fell due during the financial year under review.

In its 2023, the Council drew debt liquidation plans in respect of what it owed its creditors as a way of making steps towards reducing its debt burden.

The 2023 Council budget had since been approved by the Minister of Local Government and Rural Development.
The Council would endeavour to settle its obligations towards its staff following the set out debt payment plans once as liquidity position improved.

As way forward, and with the instituted measures to improve its liquidity position, the Council would endeavour to settle its indebtedness as stated in the debt liquidation plans and strive to settle the existing bills as they fell due.
315 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the settling of outstanding staff liabilities without delay.

The Committee will await a progress report on the matter.

Mitete Town Council Paragraph 41 Audit Findings An examination of accounting and other records maintained at the Council for the financial year ending 31st December 2021 and a physical inspection of some selected project revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the ministry of local government and rural development and to generate funds from various sources in amounts totaling K11,893,681 against which amount totaling of K10,511,766 were received and generated in a negative variance of K 1,381,915 as shown in the table below: Table 1- Budget and Income In addition, amounts totaling K2,872,615 were brought forward from the previous year bringing the total funds available to K13,384,380.
316 RECEIPTS Original BudgetK Actual AmountsK Variance K Local taxes6,000 6,075 75 Fees and Charges333,480 60,676 (272,804) Licences450 400 (50) Levies390 2,000 1,610 Permits2,950 2,843 (107) Commercial Venture1,776,100 360,169 (1,415,931) Borrowings0 - (0) Other Receipts59,351 59,351 - Sub total2,178,721 491,514 (1,687,207) Government Support Other Grants- 392,453 392,453 Local Government Equalisation Fund8,114,960 8,010,928 (104,032) Constituency Development Fund1,600,000 1,616,870 16,870 Sub total9,714,960 10,020,251 305,291 Grand Total11,893,681 10,511,766 (1,381,915) Management Response Local Taxes It was submitted that the positive variance in local taxes (personal levy) was as result of an increase in the deployment and transfers of staff in the District during the period under review, which were more than the assessment forms that were used as an input in the 2021 budget.
Management had since updated the revenue database by capturing all the formal and informal employees in the district.

The Council had assigned a specific data entry officer to be collecting information regarding among other streams personal levy revenue.

Management would further ensure that the collected information was submitted to the Ministry of Finance and National Planning prior to the beginning of each financial year in order to avoid mismatch in the budget.
Fees and Charges The variance under fees and charges during the period under review was as a result of the inclusion of charges for plot premiums that was difficult to be collected in the period under review because applicants did not show up to apply for plots despite following the normal procedure for state land alienation as guided under land administration and allocation Circular No.1 of 2015.
Management had through public relations office factored in the 2023 budget a component for community engagement and re-advertising of the same plots taking into account the massive recruitment of staff in Health and Education sectors in the district.

The council would ensure that before charges on plots were included in the budget, a need for plots assessment shall be carried out in line with District economic activities.
Licences, Levies and Permits It was submitted that the variance in licences, levies and permits was as a result of the new inclusion in the traders and local investors during the period under review.

Management had since updated its revenue database to capture the actual business community under the category of the licences, levies and permits by including them in the council budget.
Management would engage the Ward Development Committee (WDCs) to help in the identification and collection of Revenue streams such as fish and sand levies through the supervision of the council management.
Commercial Venture The variance under commercial ventures (the bus and the truck) was created as a result of: a) the breakdowns the bus experienced due to bad state of the Katunda-Watopa road which was a route to Lukulu; delays in repairing the bus due to COVID-19 restrictions by the service provider (TATA) motors; and lack of a parking slot at Intercity Bus Terminus in Lusaka.

This contributed to the loss of revenue.


b) c) 317 Management had since applied and secured a loading slot in intercity bus terminus in Lusaka where travelers destined for lukulu via Kaoma boarded buses from.

The bus had been repaired and ready to be on the road in order to meet its purpose.
Management would ensure that strategies and a taskforce to monitor efficiency and effectiveness of these commercial ventures (bus and the truck) was put in place in order to run them as business in line with the ventures.

Other Grants It was submitted that the Council used to budget for other grants but such grants were never released to the Local Authority, due to other national priorities.
Management had since budgeted for other grants in the 2023 budget and the Ministry of Local Government and Rural Development had approved the same.

Management would always endeavour to budget for other grants in its subsequent Revenue estimates as guided by the Ministry.

Local Government Equalisation Fund It was submitted that the variance was as a result of deductions that were done at source.
Management had since written to the Ministry of Local Government and Rural Development bringing it to their attention the under cast in the LGEF and this had been attended to by the Ministry.

Management would always ensure to remit the deduction to the respective institutions on time and would endeavour to reconcile the figures with the parent ministry.
The Council would engage the Ministry of Local Government and Rural Development in a short term to increase Local Government Equalisation Fund for Mitete Council as it had few economic activities within the district.

Committee’s Observations and Recommendations The Committee notes the submissions on budget and income and urges the Accounting Authority to submit supporting documents to the office of the Auditor General for audit verification.
The Committee also urges the Accounting Authority to re-engage the Ministry ofd Rural Development on the possibilities of increasing the equalisation funds.

The Committee will await a progress report on the matter.

b.
b.

Management of Payroll and Other Staff Matters - Failure to Fill Vacant Positions It was submitted that at the time auditors were auditing the institution, the officers who filled up key positions in question were transferred and separated from Mitete Town Council and the Local Government Service Commission was doing a systematic deployment of staff to the Local Authority.
Management made a request to Local Government Service Commission to fill up the position of the District Planning Officer and the Deputy Council Treasurer, respectively.

Management further made follow ups on the recommendations that were made for the positions in question and the Local Government Service Commission had since appointed an officer to act as District Planning Officer.
318 Management would always ensure that staff quarterly returns accompanied by a vacancy status report were submitted to the Local Government Service Commission on time every quarter.

Management would continuously make follow ups to the Local Government Service Commission.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Local Government Service Commission on the matter.

The Committee will await a progress report.


c. Lack of Title Deeds to Council Guest House It was submitted that this was due to delays in the preparation of survey diagrams by the surveyor.

The Council had since written to the provincial surveyor in Choma to expedite the release of survey diagrams for use in the acquisition of a title deed for the Council Guest House.
Management would ensure that title deeds were obtained before any development was embarked on as well as ensuring that all other incoming council properties were on title.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that title deeds for Council properties are acquired without delay.

The Committee will await a progress report on the matter.
Rehabilitation of 1 X 3 CRB at Mbumi Primary School d. Management of Constituency Development Fund i.

It was submitted that this was due to non-performance by the contractor who was awarded a contract to rehabilitate a 1x 3 class room block under Constituency Development Fund CDF at Mbumi Primary School in Mitete District.
The Council had since written a letter to its lawyers requesting them to include Fran spin General Dealers on the list of contractors who should be prosecuted through the courts of law in order to recover K130,426, paid to the contractor as an advance payment.

Committee’s Observations and Recommendations The Committee expresses concern at the poor contract management leading to wastage of public resources.
The Committee, therefore, urges the Accounting Authority to put measures in place which will ensure that due diligence is undertaken when identifying contractors to implement projects.

The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Construction of 1 X 3 CRB at Chipepepe Community School – Stalled Project It was submitted that this was caused by the non-performance of the contractor who was awarded a contract to build a 1x 3 class room block under Constituency Development Fund at Chipepepe Community School.

The Contract had been terminated and the matter was in the Courts of law in order to recover the K157,485 monies paid as advance payment to the contractor.
319 Committee’s Observations and Recommendations The Committee bemoans the Laissez Faire attitude adopted by the Council on the management of projects and stores.

In this regard, the Committee urges the Accounting Authority to institute disciplinary action against officers who neglected to secure the caked cement.

The Committee also urges the Accounting Authority to put measures in place which will ensure that due diligence is undertaken when identifying contractors to implement projects.
The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.

iii.

Construction of 1X3 CRB at Mbao Primary School – Stalled Works It was submitted that the failure by the contractor to complete the project was on account that the community refused to contribute 25 percent, in line with the 2006 CDF guideline.
The contractor informed management that the local community did not make the required contribution in order for the contractor to complete the project on time.

Management reported the matter to the CDFC for additional funding and on 2Oth September, 2O22, the Ministry of Local Government and Rural Development approved the request for a variation.

The contractor had since remobilised and was on site working to complete the project within three months.
Management would ensure that the scopes of works for community project were fully funded by the CDFC as guided by the new 2022 CDF guidelines.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.

iv.
iv.

Construction of 1 X 3 CRB at Mataba Secondary School – Stalled Works It was submitted that the failure by the contractor to complete the project was on account that the community refused to contribute 25 percent in line with the 2006 CDF guideline.

Management reported the matter to the CDFC for additional funding and on 2Oth September, 2O22 the Ministry of Local Government and Rural Development approved the request for variations.
The contractor had since been remobilised and was on site to complete the project within three months.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.
Failure to Remit Statutory and Other Obligations It was submitted that the failure to pay statutory obligations to all statutory institutions was due to non-receipt of Local Government Equalisation Fund (LGEF) by the Council for two months in 2018 and one month in 2019, which were carried over as indebtedness in 2021.

320 The Council had put in place debt management plan for 2022 that, was being implemented up to 2023.
Further management has made some payments towards the liquidation of personnel related debt.

The council would always ensure that all the personal emolument were paid at gross figure rather than at net and entered into a Memorandum of Understanding with stakeholder institutions and agreed on a debt liquidation plan.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Failure to Settle Staff and Other Obligations Baggage Claims It was submitted that the query was caused by non-payment of baggage claims for the transferred officers to Mitete town Council due to liquidity challenges.

A debt management plan had been put in place and had made payments towards this debt.

The Council would always ensure that all personal emoluments were paid as they fell due.
Terminal Benefits It was submitted that management had put in place a payment plan which was being implemented after some improvements on revenues for the Local Authority.

Management had further paid K44,053.69 towards Terminal Benefits for the separated employees.

Leave Travel Benefits The query was caused by non-payment of Leave travel claims for the officers at Mitete town Council due to liquidity challenges.
Management had put a payment plan in place and was being implemented after some improvements on revenues for the Local Authority .Further management has made some payments towards leave travel claim in line with their conditions of Service.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that all outstanding staff obligations are paid without delay.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

321 Mongu Municipal Council Paragraph 42 a.


Budget and Income During the period under review, the Council received grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K38,741,509 against which amounts totaling of K42,390,168 were received and generated resulting in a positive variance of K3,648,659.
In addition, funds amounting to K5,281,735 were brought forward from the previous year bringing the total funds available to K44,023,244.

Management Response Local Taxes Personal Levy It was submitted that the adverse variance recorded under Personal Levy was as a result of non- collection of amounts expected from small business enterprises which remained closed due to the impact of COVID-19 pandemic.
Further the revenue collected under this budget line came from Ministry of Finance and National Planning in respect of personal levy for Government workers and the amounts collected from large scale business enterprises such as Zambeef, Shoprite and PEP stores.

Property Rates The Council performed well under residential property rates where 88 percent was recorded.
This was because the property owners were still in active employment as a result they were able to pay for the property rates while the poor collection under commercial property rates was as result of the small scale business enterprises who experienced liquidity challenges as explained above.

The Council invoked the provisions of the Rating Act, No.

21 of 2018 by executing the warrants of distress for non-compliant by property rate payers.
The total amount of K315,699.50 was collected through the court sheriff.

Further to encourage compliance, Finance, Valuation and Commercial Undertakings Committee of the Council resolved to give an amnesty of 50 percent to the rate payers who would pay 50 percent of the outstanding property rate arrears as at 31st December, 2022, at the meeting held in February 2023.The resolution of the Finance Valuation and Commercial Undertakings Committee was yet to be adopted by the Full Council.
322 The Council would continue to engage the stakeholders and where the engagement failed, the Council would involve the court bailiffs for the outstanding property rates arrears.
Fees and Charges Plot Premium It was submitted that the adverse variance of K3,525,720 recorded under plot premium was caused by the suspension of the sale or lease of any Council Property and land alienation by the Ministry of Local Government by then through circular MLG/101/4/1 dated 16th April, 2021.The Committee was informed that the circular was issued after the council budgets were approved and the management could not adjust the budget because the date of the lifting of suspension was not known.
It was submitted that immediately the suspension of the sale of land was lifted, the Council began the process of land disposal and a total sum of K265,500 was collected.

Management would ensure that in future the budget was revised when the circular to ban the sale of land was issued.

Billboards The Council recorded an adverse variance under this budget line because some billboards were abandoned which led the Council not to collect the amounts due.
In addition some billboards were not paid for due to the fact that billboard owners faced financial challenges during the year under review.

It was submitted that a total sum of K77,368.76 was collected and that bills/demand notices were sent to the billboard owners demanding for the outstanding amounts.

Management would ensure billboards not paid for were uprooted and legal action taken.
Rentals The adverse variance recorded under this budget line was due to the fact that some shop tenants defaulted due to liquidity challenges they faced as a result of the impact of post COVID-19 pandemic.

It was submitted that rental arrears in amounts totaling K22,578 had been collected and that rentals due for 2022 in amounts totaling K53,322 for year 2022 was collected giving the total collection of K75,900.This was after management issued eviction notices.
Management would ensure that tenants adhered to the lease agreements by paying rentals in advance.

Licences and Permits The failure to meet the budgeted income on Licences and Permits was as a result of the impact of COVID-19 pandemic (second wave) which caused most business houses scale down or closing completely.

323 The Council had constituted the Task Force team who had been charged with the responsibility of ensuring that all traders were compliant.
Further the Council had updated the database of all the Business houses in the district and individual ledgers accounts have been opened to help the Council monitor the compliance.

Management would ensure that there was continuous update of the database and tracking the payments so as to improve on the compliance.

Levies It was submitted that the query was as a result of the use of un-updated database at the time of budgeting as well as unforeseen new traders that came on board in the course of the year.
It was regrettable that the budget was not flexed (adjusted) to cater for excess income.

However, the revenue database had since been updated and budgets for subsequent years were based on the updated revenue database.

Management would ensure that revenue database was updated regularly so as to give accurate estimates at the time of budgeting.
Commercial Venture The cause of the query was a result of the net profit figure reported in the financial statement as income against the gross budgeted income for the commercial venture.

Further, the Sirmwanawina was under rehabilitation hence the operations of the motel were not at its full capacity.

It was submitted that the Council had adjusted budget and income report for the year 2021.The total sales for the Commercial venture was K168,863 for the year 2021 against the budgeted sales of K565,069.
Management would ensure that the budgeted income was compared with the actual receipts for the period and not the net profit.

Other Receipts The over collection of K13,056,343 on other receipt was as a result of the funds received from the Electoral Commission of Zambia for 2021 election activities which was not budgeted for.

It was submitted that supplementary budget was not prepared to normalise and account for the excess income.
Management would ensure that in future supplementary budgets were prepared whenever there was a variation between the budgeted income and actual receipts for national support.
Local Government Equalisation The adverse variance on Local Government Equalisation Fund (LGEF) was as a result of the deduction done at source by the Ministry of Local Government Rural Development for the insurance of fire truck, LASF contribution, ZULAWU HQ and Firesuz HQ which caused the 324 variance between the actual receipts and the budgeted amount.
Management would continue to rely on the advice from the parent Ministry whenever they deducted monies at source for the insurance of fire truck, pension contribution to LASF, ZULAWU HQ and FIRESUZ HQ.
The Council sought the indulgence of the Ministry of Local Government and Rural Development to increase the Local Government Equalisation Fund from K1,358,000 to K1,800,000.The obtaining Local Government Equalisation Fund grant was not enough for 20 percent capital component, union contribution, councillors allowance and the 10 percent salary increment which was done across board.
Constituency Development Fund The favorable variance on Constituency Development Fund was as a result of interest earned on Mongu Central and Nalikwanda Constituency Development Fund (CDF) accounts.

It was submitted that the supplementary budget was not prepared to cater for interest earned.

The Council had since transferred the interest earned to the Treasury account.
Management would ensure that in future interest earned was reported and accounted for in accordance with the provision of section 33 of the Public Finance Management Act, No.

1 of 2018.

Committee’s Observations and Recommendations The Committee notes the responses on budget and income and urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.

Operational Matters i.


Weaknesses in Management of Markets  Failure to Control and Manage Markets It was submitted that the four markets in question were being controlled and managed by Traditional Leadership through the Barotse Royal Establishment.

Council would engage the Government through Ministry of Local Government and Rural Development with regard to the taking over of the four markets.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to expedite the engagement with the Ministry.

The Committee will await a progress report.

 Trading from Undesignated places It was submitted that stakeholder engagement was held on 18th January, 2023 at which an agreement was reached that traders shall be operating in the markets from 06 hours to 18 hours.
Further traders were only allowed to trade outside the markets from 18 hours to 20 hours.

Minutes of the stakeholders meeting were available for verification.

325 The Council would continue to abide by the provision of section (7) (1) of the Market and Bus Stations Act, No.

7 of 2007.

Further, the Council had also commenced the taking of stock of the stands in markets in order to establish the empty stands which would be allocated to the traders once the engagements were concluded.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Maintenance of Townships Roads - Failure to Maintain Roads It was submitted that the Council did not maintain Arthur Wina and Old Shoprite roads due to liquidity problems.
The Committee was informed that Old Shoprite road had been included on maintenance Schedule for the Mongu – Limulunga road which would be done by Avic international contracted by the Central Government.

The scope of work was overhauling the entire stretch to bituminous standard with lined drainages.

With regard to Arthur Wina Road, it was submitted that the road was also under Mongu– Limulunga Road to be done by Avic International.
The scope of work was to overhaul the entire stretch to bituminous standard with lined drainages and installation of culverts on selected section.

Further, the Contractor was already on site.

The Local Authority would continue to engage the Central Government through National Road Fund Agency to fund the maintenance of the roads in the district as the cost of maintaining the roads was beyond the capacity of the Council.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.

Failure to Conduct Fire Inspections It was submitted that the Council did not issue fire certificates to the seven Government offices, three training institutions and three medical facilities who did not comply with fire safety stands.
The fire inspection was conducted at the institutions in question.

However, these institutions did not comply with the fire safety regulations, hence the Council could not proceed with issuance of the fire certificates instead a recommendation was made to improve the fire safety standards as required by the law.
The Local Authority would continue to sensitise the public institutions on fire safety matters and advise them to make budgetary provisions for the payments of fire certificates to the local authority as their legal requirement.

326 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Failure to provide sufficient protective clothing for Fire fighters It was submitted that the Council did not provide sufficient protective clothing for fire fighters due to liquidity problems at that time.

The Council had since procured the protective clothing for its fire fighters.

The Council would ensure protective clothing for fire officers were procured on time.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iv.

Environmental Management The Environmental Management Act, No.
12 of 2011 states that, “A Local Authority shall designate one or more waste disposal sites or waste collection sites within the waste control area and inform the public within the waste control area of the location of the designated waste disposal and waste collection sites”.

Further, the Solid Waste Regulation and Management Act, No.
20 of 2018 states that,“A local authority shall within its jurisdiction, collect and dispose of, or arrange for the collection and disposal of, all household waste in accordance with this Act, ensure that waste is collected, transported and disposed of in accordance with this Act, provide litter receptacles in public places; and prepare and submit reports relating to solid waste management to the Ministers responsible for health, environment or water”.
The following were observed:  Failure to Provide Protective and Safety Clothing It was submitted that the Council did not provide sufficient protective clothing for employees such us as heavy duty PVC gloves and gas mufflers due to liquidity problems at that time.

Protective clothing such as heavy duty PVC gloves and gas mufflers had since been procured.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

 Failure to Cover Waste during Transportation It was submitted that the Council had procured waste covering tents hence waste was not being covered during its transportation to the dumpsite to avoid littering due to limited resources at that time.
It was regrettable that the waste covering tents were not provided at the time of the audit.

327 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

 Lack of Disposal Site It was submitted that a new dumpsite was procured and provision had been made in the 2023 budget for the new dumpsite to be approved by ZEMA.
Further, it was submitted that the Council had since discontinued disposing off the waste in undesignated area.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
c. Accounting for Revenue - Failure to Collect Revenue Property Rates The Committee was informed that the uncollected property rates K766,460 at the end of 2021 financial year was as result of non-compliance by the small scale business enterprises who experienced liquidity challenges as explained above.
The Council had since collected a total sum K315,699.50 against the outstanding balance of K450,760.50.Further the Council had approved a debt relief of 50 percent on properties that would clear 50 percent of the outstanding balances as at 31st December, 2022.

Management would ensure outstanding property rate arrears were collected through engagement of court bailiffs.
Rentals The Committee was informed that the adverse variance recorded under this budget line was due to the fact that some shop tenants defaulted due to liquidity challenges they faced as result of the impact of post COVID-19 pandemic.

The amount of K22,578 owed by the tenants in respect of rental arrears had been collected in full.

Management would ensure that tenants adhered to the lease agreements by paying rentals in advance.
Billboards The Council recorded an adverse variance under this budget line because some billboards were abandoned which led the Council not to collect the amounts due.

In addition some billboards were not paid for due to the fact that billboard owners faced financial challenges during the year under review.

328 The Council collected a total amount of K77,368.76 as at 14th February, 2023 against billboard balance owed as at 30th September, 2022 leaving a balance of K1,047,352.36.
Further, demand notices were sent to the clients demanding for outstanding balances.

Plot Premiums – Residential The Council collected a total amount of K141,500 against the outstanding balance on plot premiums residential as at 30th September, 2022, leaving a balance K1,300,172.

Further, the Council had issued demand notices to all the clients demanding for outstanding balances.
Plot Premium – Commercial The Council had collected a total amount of K124,000 against the outstanding balance on plot premium residential as at 30th September, 2023, leaving a balance K473,515.

Further, the Council had issued demand notices to all the clients demanding for outstanding balances.
Below is the current status on uncollected revenue: S/N Type of Revenue Property Rates Rentals from Shops Billboards Plot Premium – residential Plot Premium Commercial Total Outstanding Balance as at 30th September 2022 766,460 22,578 1,051,450 1,441,172 597,515 3,879,175 Collections to date Balance 315,699.50 450,760.50 22,578 77,369.76 141,500 124,000 681,147.26 3,198,028.74 NIL 974,081.24 1,299,672 473,515 The Council would ensure tenants pay rentals in advance for the rented shops.
The Council would uproot the billboards with arrears and take legal action against outstanding balances.

The Council would also repossess unpaid for plots and re-advertise to the general public on a first come first serve basis.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that all the outstanding dues are collected without delay.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

329 d. Management of Payroll and Other Staff Related Matters i.
Payment of Salary to an Officer absent from Duty without Leave It was submitted that the Council paid salaries and allowances to the Director Legal Services who was absent from duty between February 2021 and March 2022 because the officer was still in employment.

The paid study leave for the Director Legal Services was approved.

Approved leave forms were available for verification.

Further, the Council had only one officer admitted to the bar who was representing the Council in the High Court of Zambia.
Therefore the Council used to recall the officer during court case hearing, hence the reason of paying allowances and travel logistics.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Over Employment of Staff It was submitted that the mandate to employ and deploy Council staff was the mandate of the Local Government Service Commission.

The Council only received staff deployed and had no authority over the matter.

The Council wrote to the Local Government Service Commission requesting the excess staff to be transferred to other needy councils.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

e. Management of Assets i.

Fleet Management  Delayed Repair of Motor Vehicles It was submitted that the Council had only paid K60,000 part payment towards the repair of the said vehicles against contract price of K152,847.
Further, it was submitted that the cited vehicles had not been repaired and brought back to the Council as observed by the auditors.

Arising from this management made inquiries to Proper Parts garage, who in their letter dated 9th November 2022 made demands for additional payments but Council in the letter dated 6th December 2022 made counter demands among other things validity of contract at the time of transaction and evidence of commenced works when the initial payments were paid.
In addition this matter was being investigated by the anti-corruption commission after full council resolution under minute number MMC/41/10/22 held on 7th October 2022.

330 Management would ensure that the vehicles were repaired once the investigations were concluded.
Committee’s Observations and Recommendations The Committee bemoans the poor contract and asset management by the Council and urges the Accounting Authority to institutes disciplinary action against the officer who engaged the contractor to work on the vehicles without following procedure.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
f. Management of Local Government Equalisation Fund The Local Government Act, No.

2 of 2019 provides that a Council should use at least twenty (20) percent of the equalisation fund received in any financial year to finance capital expenditure.

During the period under review, amounts totaling K13,638,671 were received as equalisation funds out of which amounts totaling K2,727,734 being 20% of the funded amounts were to be transferred to the capital account.
The following were observed: i. Misapplication of Funds During the period under review the Council misapplied amounts totaling K623,638 meant for capital projects on operational expenses such as payments for salaries and allowances and procurement of fuel.

As at 30th September, 2022, the funds had not been reimbursed.
Management Response It was submitted that the Council used borrowed funds to pay salaries for the employees and fuel for services due to liquidity challenges and inadequacy of Local Government Equalisation Fund that the Council faced.

When the financial status improved the Council reimbursed the borrowed funds.

The Council had written to the Local Government Service Commission to downsize the labour force at Mongu Municipal in order to reduce the wage bill.
The Council would engage the Ministry of Local Government and Rural to consider increasing Local Government Equalisation Fund for Mongu Municipal Council.

The Council had also commenced the process of updating the valuation roll which would increase revenue base once approved.

331 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

ii.

Implementation of Projects  Construction of New Office Block o Failure to Complete a Project The delay to complete the construction of the office was as a result of funding the project in phases.

It was submitted that the Office Block had since been completed.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

o Questionable Payment for Building Materials The cause of the query was as a result of a payment voucher not supported by quotation, Local Purchase Order, receipt or Goods Received Notes at the time of audit due to the fact that the documents were mistakenly submitted as evidence to court in the case of Mongu Municipal vs. Tapwell General for non-delivery of building materials for Mongu Central CDF.
It was submitted that the documents had since been retrieved.

Management would ensure that the provision of Public Finance Management (General) regulations of 2020 were adhered to.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

g. Constituency Development Funds (CDF) i.


Delayed Implementation of CDF Projects The delay in the implementation of the 2021 projects was due to the fact that the CDF Committee was dissolved on 12th May, 2021 and by the time the funds were disbursed to the Council in October 2021, the CDF Committee had not yet been put in place to oversee its expenditure.

The CDF Committee was only put in place in December, 2021.
By the time of orientation of the CDF Committee members in mid- December, 2021, most of the sites were not reachable due to flooding and the terrain of the area.

The window period for project implementation was limited due to flooding in most parts of western province.

The 2021 CDF projects had since been implemented.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter 332 h. Management of Liabilities i.

Failure to Remit Statutory Obligations ii.

Failure to Settle Staff Obligations The Council had not paid the total amount of K20,428,629 owed to its creditors as at 31st December, 2021, due to liquidity problems.
The Council had paid K3,550,253 towards statutory creditors and further the Council under minute number FVCU/22/08/22 approved the debt settlement agreement between Mongu Municipal Council and NAPSA amounting K146,933 in respect of property rates owed to the Council against unremitted pension contributions.

Further, a total amount K569,289 had been paid towards outstanding staff creditors.
See table below: Statutory Creditors Staff Creditors The Council had requested the Ministry of Local Government and Rural Development to bailout Mongu Municipal Council as the total outstanding debt was beyond the capacity of the Local Authority.

Further the Council would engage the statutory institutions to enter into time to pay agreements.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that statutory institutions are engaged to come up with debt repayment plan without delay.

The Committee also urges the accounting Authority to ensure that both outstanding statutory and staff obligations are cleared.

The Committee further urges supporting documents be submitted to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.
333 S/NType of DebtOutstanding BalancePaymentBalance1ZRA - PAYE6,719,038.00 3,269,663.00 3,449,375.00 2NAPSA3,940,664.00 146,933.00 3,793,731.00 3LASF2,456,577.00 133,657.00 2,322,920.00 Total13,116,279.00 3,550,253.00 9,566,026.00 S/NType of DebtBalance as at 31.12.2021PaymentsBalance1Salary Arrears3,703,186.00 422,748.00 3,280,438.00 2Settling In Allowance621,475.00 54,981.00 566,494.00 3Terminal Benefits2,987,690.00 91,560.00 2,896,130.00 Total7,312,351.00 569,289.00 6,743,062.00 Monze Town Council Paragraph 43 Audit findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a) Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totalling K28,669,648 against which amounts totalling K27,560,361 were received and generated resulting in a negative variance of K1,109,287.
See table 1 below.

Table 1: Budget and Amounts No.

Source Of Funds 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.
Locally Generated Local Taxes Fees and Charges Licences Levies Permits Commercial Venture Other Receipts Sub Total National Support Local Government Constituency Development Fund Other grants Sub Total Budget (K) Income (K) 3,785,113 6,958,355 181,580 1,076,500 828,100 - 540,000 13,369,648 951,212 2,762,466 243,934 1,037,162 275,311 720,332 7,759,358 13,749,775 Variance (K) (2,833,901) (4,195,889) 62,354 (39,338) (552,789) 720,332 7,219,358 380,127 10,300,000 4,800,000 9,010,586 4,800,000 (1,289,414) - 200,000 15,300,000 - 13,810,586 (200,000) (1,489,414) TOTAL 28,669,648 27,560,361 (1,109,287) In addition, amounts totalling to K5,591,755 were brought forward from the previous year bringing the total funds available to K33,152,116.
As at 31st December 2021 amounts totalling K27,304,769 had been spent leaving a balance of K5,847,347.

334 Management Response Local Taxes The Accounting Authority submitted that the failure to collect local taxes amounting to K2,833,901 was due to low compliance levels by the rate payers and also variation in numbering of selected residential areas.

Management engaged Court Sheriffs to enhance the enforcement of the rate collection from defaulters.
Management also submitted that 80 percent of the cadastral plans had been updated for easy identification of properties.

Management also constituted a task force team to enhance revenue collection and collected K2,274,694.87 as at 31st December, 2023.
Management had further embarked on an exercise to name the roads and also sensitise property owners to display plot numbers for easy identification of the property and had continued to sensitise the Business houses and other stakeholders on the importance of paying council taxes.
Fees and Charges It was submitted that the failure to collect fees and charges amounting to K4,195,889, among other reasons, was due to the delay in completion and handing over of the bus station by the contractor which was unrealistically budgeted at K1,600,000.

Management had also anticipated to sell survey diagrams on the newly created plots unrealistically budgeted at K800,000.

However, the response was not as expected.


Further, it was submitted that the failure to collect fees and charges was due to the outbreak of Foot and Mouth disease in Southern Province and Monze was one of the most affected districts.

This led to restrictions of movements and slaughter of animals, thereby reducing collection of livestock levy, carcass levy and meat inspection fees.

It was submitted that the bus station was opened in April, 2022 and was operational.
Licences It was submitted that the favourable performance of K62,154 was attributed to businesses opening up after COVID-19 cases reduced and new business houses were opened up.

Management continued sensitising and engaging the stakeholders for the need to pay licenses in order for the Council to provide the required municipality services.

Levies and Permits It was submitted that the cause of query was due to business houses operating at half capacity or completely closed due to COVID-19 restrictions.
Management had since embarked on revenue enhancement exercises like formation of task force teams and public announcements to sensitise the community on the need to pay levies and permits.

335 Commercial Venture It was submitted that the cause of the query was as a result of under Budgeting as the Council did not expect any revenue from the commercial venture in the year under review due to renovation.

However, there was a demand for restaurant services at the truck park hence opening of restaurant.
Management submitted that it had included this revenue stream in the 2022 and 2023 budgets and would continue to endeavour to research on other possible revenue opportunities.

Other Receipts It was submitted that the favourable variance was as a result of the Electoral Commission of Zambia funds that were received for the elections in the year 2021.
Local Government Equalisation Fund It was submitted that the negative variance of K1,289,414 was as a result of deductions at source such as union dues, insurance of fire tender, audit fees.
The Council would continue to engage the Ministry of Local Government and Rural Development on the deductions effected at source as well as increase of the Equalisation Fund as it was insufficient to meet all staff obligations and service Other Grants It was submitted that the negative variance was as a result of the Council not receiving Grant in Lieu of Rates Amounting to K200,000 during the year under review.
The Council would continue to engage the Ministry on the outstanding Grant in lieu of rate for possible funding.

Committee’s Observations and Recommendations The Committee bemoans the failure by the Council to collect revenue in line with the budget.

The Committee observes that the Council was merely reacting to the audit process and therefore urges the Accounting Authority to put measures in place that will enhance the budget credibility of the Council without delay.
The Committee will await a progress report on the matter.

b) Environmental Management i.

Management of the Chicheleko Dumpsite ● The Council operated Chicheleko dumpsite without approval from Zambia Environmental Management Agency (ZEMA).

Management Response It was submitted that Chicheleko dumpsite was offered to the Council in 2012 without any formal agreement and this has made it difficult to obtain a license from ZEMA.
336 Management had continued engaging traditional leadership through Headman Chicheleko to formalise the offer of the piece of land through meetings and letters.

Management would ensure that land acquisition from traditional authorities was formalised and put on record before operation commenced.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the formalising of the dumpsite and ensure that the ZEMA authorisation is acquired without delay.
The Committee will await a progress report on the matter.

The Council did not compact or cover the waste with a layer of soil but instead waste was being burnt thereby exposing the community to health hazards.

Management Response It was submitted that at the time of the audit, the Council Motor Grader and Tractor Back hole Loader (TLB) were broken down (2nd June – 17th November, 2022).

This made it difficult for the Council to clear and bury waste at the dumpsite.
Further, Monze Town Council did not have a Compactor thereby making it difficult to compact.

Management had repaired the two equipment and devised a plan of maintaining the dumpsite every week using the TLB and Grader to bury waste.

Management would strengthen the periodic maintenance programme from twice a month to four times a month because of the additional TLB that was recently acquired.

Management was also in the process of acquiring a Compactor.
This would help in the compaction of waste and maintenance of the dumpsite.

Additionally, Management was considering acquiring an alternative piece of land for the dumpsite in case the traditional leadership took long to respond to the request.

337 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that waste at the dumpsite is covered or compacted, in line with the Environmental Management (Licensing) Regulations Statutory Instrument No.
112 of 2013.

The Committee will await a progress report on the matter.

● The dumpsite was not fenced for protection from access by unauthorised persons.

Dumpsite not fenced and Uncompacted solid waste Management Response It was submitted that the initial game wire fence that was erected was vandalised by the Chicheleko community on account that it was not in the actual defined boundaries.
Management was unable to fence the dumpsite due to the fact that ownership of the dumpsite was still under common customary land and could only proceed with the fencing after finalising with the ownership.

Management had continued engaging the traditional leadership through meetings and letters requesting for urgent formalisation of the land in question and proposed site plan of the dumpsite was submitted.
Management would ensure that boundaries of such nature were agreed upon and put on record (Title deed) to avoid such disagreements.

Committee’s Observations and Recommendations The Committee expresses displeasure at the land wrangle, regarding the dumpsite and urges the Accounting Authority to engage the Ministry of Local Government and Rural Development on the matter.

The Committee will await a progress report on the matter.

ii.
ii.

Lack of Receptacles at Markets It was submitted that the Council was overwhelmed with waste collection as it was operating on one light truck.

The other Tipper truck and tractor had breakdowns thereby, making it difficult to collect from refuse bays from the four markets.

Management had cleared the waste around the refuse bays using hired tipper trucks and the bays were accessible for use by marketers.

Further, solid waste unit ensured that waste was collected from the refuse bays on daily basis.
The Council was in the process of acquiring a new tipper truck and tractor to enhance refuse collection and avoid a recurrence of uncollected waste from refuse bays in the markets.

338 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the procurement of a tipper tract without delay.
The Committee will await a progress report on the matter c. Accounting for Revenue i. Unaccounted for Revenue It was submitted that the cause of the query was late banking and misstatement of cash received by the revenue collector.

The officer was charged for the offence of late banking and alteration of receipt book.

Further, the officer was made to pay back the full amount of K7,476 which was deposited.

In addition, the officer had since been transferred from revenue to solid waste section.
The Council had migrated to cashless (Point of Sale) POS by encouraging clients to make direct deposits into the Council account.

In addition, the Local Authority would ensure that the Local Authorities Financial Regulation No.72 was adhered to.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Unaccounted for Revenue - Meat inspection ii.

It was submitted that the cause of the query was as a result of under collection and not being able to trace some farmers to collect revenue mainly from two abattoirs (Chisekesi and ABM) due to distance.

The Council had done reconciliation on the two abattoirs and introduced two daily registers in which the Public Health Inspector and the Revenue Collector both signed to reconcile the inspections conducted and revenue collected on a daily basis.
Further the Council had deployed a specific revenue collector to be stationed at each abattoir.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the stipulated measures are actualised without delay.

The Committee will await a progress report on the matter.

iii.
iii.

Failure To Collect Revenue Section 9 (h) of the Public Finance Management (General) Regulations, 2020 requires the head of the accounting unit of the Local Authority to collect in a timely manner all revenue due to the local authority.

During the period under review, the Council was expected to collect amounts totalling K2,894,955 in property rates and rental charges.

However, as at 30th September, 2022, amounts totalling K1,218,465 were collected leaving a balance of K1,676,490.

See table 2 below.
See table 2 below.

339 Table 2: Uncollected Revenue No.

1.

2.

Revenue Type Property Rates Rental Charges -Leased Properties TOTAL Expected K 2,644,602 250,353 Collected K 1,128,397 90,068 Uncollected K 1,516,205 160,285 2,894,955 1,218,465 1,676,490 Management Response Property Rates It was submitted that the failure to collect Property Rates amounting to K1,516,205 was due to variation in numbering for the residential and commercial properties.
It was submitted that 80 per cent of the cadastral plans had been updated for easy identification of properties.

Management had engaged Court Sheriffs to enhance the enforcement of the rate collection from defaulters after the COVID-19 had eased.

ii.
ii.

Rental Charges – Leased Properties The Committee was informed that the failure to collect rental charges – leased properties during the period under review, the Council had terminated lease agreements for the defaulting tenants and was unable to re-advertise to the new tenants due to a ban from Ministry of local Government to lease council properties.

Management had re-advertised all vacant Council properties for lease and the Council had collected K88,705 as at 31st December 2022.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that the stipulated measures are actualised without delay.

The Committee will await a progress report on the matter.

iii.

Loss of Revenue due to failure to have an employee database For Personal Levy It was submitted that the query was as a result of an oversight by the Council to charge only the owner of the business.
Management had distributed Personal Levy Assessment forms to companies/institutions to ascertain the actual number of employees in order to update the database and as at 31st December, 2022 the Council collected K56,400.

The Council would continue to collect Personal Levy whilst updating the Personal levy data in the district.

340 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges that the stipulated measures are actualised without delay.

The Committee will await a progress report on the matter.

d. Management of Payroll and Other Staff Related Matters i.

Over employment of staff It was submitted that the query was caused by the Council having received more employees from the Local Government service Commission to fill in positions which had already been occupied.
Management had submitted a request to the Local Government Service Commission to transfer the excess staff to other Local Authorities.

Management would endeavour to adhere to the institution’s staff establishment against the occupied positions.

Further Management would continue to engage the Local Government Service Commission to ensure that issues of over employment were rectified on a timely basis.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee, therefore, recommends that the Service Commission be re-engaged on the matter as it resolves to wait a progress report.

ii.
ii.

Failure to Confirm Officers It was submitted that the delay to confirm the officers after probation period was as a result of dissolution of previous Local Government Service Commission and the Current Local Government Service Commission was not sworn in at the time of the audit.

Management submitted recommendations for confirmation to the Local Government Service Commission.
The Council would endeavour to ensure that all employees due for confirmation were confirmed on time, through the Local Government Service Commission and the created Human Resource Committee.

The Council had started receiving confirmation letters and so far one officer had been confirmed from the queried list.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee, therefore, recommends that the Service Commission be re-engaged on the matter as it resolves to wait a progress report.

341 iii.

Employees without requisite qualifications It was submitted that at the time of appointment of the three queried officers in their respective positions, they had met the required qualifications .However with time, Councils had been restructured and hence the positions had been upgraded in terms of qualifications.
Management had written to the Local Government Service Commission to request for officers with the right qualifications to fill the positions being queried.

Management had further encouraged the queried officers to upgrade their qualifications.

Management would continue to engage the Local Government Service Commission to ensure that positions were occupied by personnel with the right qualifications.
In addition, management had put in place a training policy in which it encouraged its employees to upgrade themselves and attain the necessary qualifications needed for the positions.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to regrade all the affected officers who were not willing to improve their qualifications as required.

The Committee will await a progress report on the matter.

iv.
iv.

Employment of Casual Workers It was submitted that for the Council to continue delivering services to the community efficiently, it needs to have workers operating in some critical sections and area such as grave diggers, Cleaners, Refuse collectors and Watch men.

However, the Council did not have enough general workers employed on permanent basis to operate in all the above mentioned sections as a result, the council had been resorting to using short term contracted workers.
Management had requested for authority from the Ministry of Local Government and Rural Development to recruit general workers on permanent basis, to be assigned in the positions queried.

Management would continue to engage the Ministry of Local Government and Rural Development and make follow ups on the requests for authority to employ the needed number of general workers.
Committee’s Observations and Recommendations The Committee bemoans the violation of the employment act by the Council and urges the Accounting Authority to desist from the practice and ensure that the matter is addressed without delay.

The Committee will await a progress report on the matter.

Failure to Prepare Payment Vouchers Procurement of Goods and Services i.

It was submitted that the query was caused by misfiling of payment vouchers.
The payment vouchers were retrieved from the files and had since been filed in the correct box file.

Further, management had improved the filing system by training officers and procuring more filling cabinets.

342 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Irregular Use of Accountable Imprest It was submitted that ZESCO was taking long in acknowledging payments done by cheques, leading to paying using cash imprest and payment was retired using ZESCO cash receipts.
Management had put in place a payment plan in which payments by cheque to ZESCO were made in good time before power supply was completely cut off.

Management was particular on the payment method used, especially using imprest to pay for goods and services had improved in terms of planning for payments before they fell due.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to institute disciplinary action against officers who approved the payment and urges that the use of Accountable Imprest on purchase of goods and services with known prices, must avoided at all cost.

The Committee will await a progress report on the matter.

e. Management of Assets i.


Lack of Title Deeds It was submitted that the query was due to delayment in the processing of survey diagrams and other documentations.

Management had started the process to ensure that the said properties were put on title.

Submission to Ministry of Lands and Natural Resources was made and supporting documents were available.

Further, management had processed one offer letter, two invitations to treat and the other properties were being numbered by Ministry of Lands.
A search that was conducted at Ministry of Land reviewed that two of the queried properties were already on title and the Local Authority was in the process of getting some copies.

Management would ensure that the process of acquiring title deeds was complete when survey diagrams and other necessary documents were obtained.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee will await a progress report on the acquisition of title deeds for all the queried Council properties.

343 ii.

Failure to Maintain Properties ● Manungu Beer Hall/Store ● Nchete Hall It was submitted that failure to maintain Council properties was due to Ministry of Local Government and Rural Development Circular dated 16th April, 2021, which restricted Councils from leasing properties.
Management had a maintenance policy in place and plans were under way to lease the subject queried properties as the suspension to lease Council properties had been lifted.

Management would also continue with its plans of leasing out properties for Manungu bar and Nchete hall.

Committee’s Observations and recommendations The Committee bemoans the poor state of infrastructure and urges the Accounting Authority to prioritise the rehabilitation of the properties without delay.
The Committee will await a progress report on the matter.

Management of Local Government Equalisation Fund - Misapplication of Funds f. The Accounting Authority submitted that the query was caused by misapplication of K1,556,935 of which K68,963 being part of 20 percent capital component of the LGEF grant was used to purchase work suits and cleaning tools used to mitigate the spread of COVID-19 while K1,487,972 was used for salaries.
The Council had from September 2022 to January 2023 transferred K492,810.03 to the Capital Account.

The Council was committed to transfer monthly 20 percent of the grant Capital component to Capital account to ensure that projects under the 20 percent component were undertaken.

Committee’s Observations and Recommendations The Committee sternly cautions the Accounting Authority against using funds meant for capital projects on other operational costs.
The Committee also urges that the funds must be fully paid back without delay.

The Committee will await a progress report on the matter.

g. Management of Constituency Development Fund i.

Construction of a Weir Dam in Kaumba It was submitted that the query was caused by inadequate skilled man power at the time of the implementation of the project considering that it was a labour based project.
Management was in the process of preparing drawings and Bill of Quantities and contract a qualified/experienced contractor on full contract basis.

Additionally, the community through the Ward Development Committee and the Constituency Development Fund Committee (CDFC) had allocated more funds in order to adequately work on the project, K180,000 from CDF 2022 fourth quarter approved funding.
344 Management would ensure that qualified and experienced contractor was awarded the contract with close monitoring and supervision.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without any further delay.

The Committee will await a progress report on the matter.

ii.
ii.

Construction of a Staff House at Sikabenga Primary School It was submitted that the outstanding works, which included; painting and fitting of doors had been completed; partial completion had been attained awaiting final inspection and hand over to the school authority.

Management would ensure that projects were allocated enough funds up to completion stage because CDF funding had been increased.

See photos of works done below.


Completed Staff House Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.
iii.

Construction of a staff House at Bweengwa Health Centre It was submitted that the agreement was that the project be partly funded by CDF (Materials) and the other part was to be funded by the community (Labour).

Unfortunately, the Community failed to meet its obligation.

The project was funded under CDF 2022 allocation and tender for the project was at evaluation stage.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

345 iv.

Completion Of 1x3 CRB at Nakasangwe Primary School It was submitted that the outstanding works, which included; painting and fitting of doors had been completed and the building had since been completed.
Management would ensure that fully funded projects were completed within the stipulated time frame.

See photos of completed works below.

Completed 1x3 classroom block painted and doors fitted Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Completion Of 1 X 3 CRB At Choongo Primary School It was submitted that works including painting, plastering (interior) and flooring had been done and the project awaited final inspection by stakeholders.

Management would ensure that projects were allocated enough funds up to completion stage because CDF funding had been increased.

See photos of completed works below.


Completed 1x3 classroom block as at 21.02.2023 346 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

I.

Management of Liabilities i.


Failure to Remit Statutory and Other Obligations It was submitted that the failure to remit statutory Obligations was as a result of historical debt, increased demand for service delivery and penalties charged (NAPSA and LASF).
The Council had continued to engage its stakeholders to develop payment plans that were attainable and at the moment LASF was deducting at source from the LGEF, The Council also submitted payment plan to NAPSA and negotiations are still underway and the Council has paid K240,072.6 to NAPSA on Principal Amount.

The Council has paid K82,202.64 to NHIMA.


The Council had budgeted to spend K30,000 monthly in respect of NAPSA debt, Monthly payment of K10,000 in respect of Funeral scheme and K26,000 monthly payment in respect of NHIMA in the 2023 budget period.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of statutory obligations to avoid the violation of workers Conditions of Service and financial regulations.
The Committee also urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Failure to Settle Staff Obligations It was submitted that Management had set aside funds to settle staff outstanding obligations in the 2022 and 2023 budget and would endeavour to follow the payment plan.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of staff obligations to avoid the violation of workers Conditions of Service and financial regulations.

The Committee also urges that supporting documents must be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Mporokoso Town Council Paragraph 44 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of 347 Local Government and Rural Development and to generate funds from various sources in amounts totaling K13,786,739 against which amounts totaling K11,164,413 were received and generated resulting in a negative variance of K2,622,326.

See table 1 below.
See table 1 below.

Table 4: Budget and Income In addition, amounts totaling K2,520,770 were brought forward from the previous year bringing the total funds available to K13,685,183 during the period under review.

Management Response Local Taxes It was submitted that the variance of K138,824 on local taxes was due to resistance from the property owners to pay rates despite delivering bills to them on time.

Management had engaged sheriffs to help the Council collect revenue from property owners.
Management had intensified sensitisation on the importance of paying rates by property owners through radio programmes and through announcements by public relations officer.

Fees and Charges The Council did not manage to sale parcels of land budgeted for in the year 2021, leaving a variance on fees and charges.

The Council managed to get a quotation from Zambia National Service (ZNS) and had applied for Land Development Fund to be used to provide services such as access roads before selling the plots.
In future management shall only budget for sale of plots after providing for the needed services Other Receipts It was submitted that the variance of K327,880 was due to the fact that the expected revenue from the Bar was not realised in full partly because of the roof which was blown off and items destroyed when we experienced a heavy rain.

The other reason was that we did not have the officer to manage the commercial ventures for the Council.
348 No Sources of Funds Budget K Income K Variance K Locally Generated 1Local Taxes178,854 40,030 (138,824) 2Fees and Charges 2,531,555 733,037 (1,798,518) 3Licences 228,147 126,590 (101,557) 4Levies4,920 - (4,920) 5Permits 78,069 57,922 (20,147) 6Other Receipts 433,006 105,126 (327,880) Sub total 3,454,551 1,062,704 (2,391,847) National Support7Local Governement Equalisation fund8,632,1888,401,709(230,479) 8Constituency Development Fund (CDF)1,600,0001,600,000- 9Other Grants100,000100,000- Subtotal10,332,18810,101,709(230,479) Total13,786,73911,164,413(2,622,326) Management requested the Ministry of Local Government and Rural Development for help and the Council was permitted to use some money from capital account to rehabilitate the Bar and it was running smoothly.
Management also requested for an Assistant Commercial Manager from the commission and had since been deployed.

Management has taken note of the Variance and would in future flex the budgets in order to avoid variances through quarterly budget reviews.

Committee’s Observations and Recommendations The Committee observes with concern the poorly performing budget and wonders how the Council performed negatively on all revenue streams.
In this regard, the Committee urges the Accounting Authority to be proactive and ensure that only realistic projections are made and achievable revenue amounts are included.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.
b.

Operational Matters - Failure to Manage Dumpsite  The council did not fence the dumpsite for protection from access by unauthorised persons,  There were no warning signs displayed at the dumpsite to warn the general public of the existence of the dumpsite, and  The council did not compact the waste with a layer of soil thereby exposing the community to health hazards.

See picture below.
See picture below.

Unfenced dump site Management Response It was submitted that The Council was constrained to fence the dump site due to limited resources.

However, the Council planned to fence the front part of the dump site, put sign posts and compact the dump site in the year 2023.

Management would put-up sign posts, compact and fence the front part of the dump site in the year 2023.

Management would prioritise the works at the dump in the year 2023.
349 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
c. Accounting for Revenue - Failure to Collect Revenue It was submitted that the failure to collect receivables from rental charges amounting to K14,900 and property rates amounting K466,006 in the year 2021, was due to resistance from the property owners while those owing for rental charges had since settled their accounts.

The Council had since collected K14,900 for rental charges from the tenants who were owing in the period under review.
For property rates, the Council managed to collect K101,125.84 and the figure was expected to rise when the sheriffs executed the warrants of distress planned to be executed in the 1st quarter of 2023.

Sensitisation programmes both on radio and announcements to sensitise property owners on the importance of paying rates to the Council was ongoing.
The Council would continue engaging and sensitising all the clients that owed the local authority in terms of receivables and ensure that what was owed was collected.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the outstanding arrears on property rates are cleared without fail.

The Committee will await a progress report on the matter.
d. Management of Payroll and Other Staff Related Matters - Employment of Casual Workers It was submitted that management had reviewed the contracts for all the employees in question and that the contracts of the employees were terminated after the expiry of their contracts.

Management had since engaged only ten people to be working as garbage collectors and general works pending employment processes to employ permanent workers.
In future the Council would ensure that workers performing jobs permanent in nature were employed on a permanent basis.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
350 e. Management of Local Government Equalisation Fund i.

Construction of Kape Market Shelter - Delayed Completion It was submitted that the delayed completion of Kape market shelter which had a labour contract price of K25,000 and that the Council undertook three projects at the same time therefore, there was delayment to complete Kape market shelter because the Council was in the same period making sure that Bweupe market and Mukanga market shelters were completed.
Management had set aside K200,000 in the 2023 budget in order to complete the remaining works at Kape market.

Management would in future ensure that projects were undertaken one after the other to avoid splitting of resources.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

ii.

Construction of Bweupe Market Shelter - Delayed Completion It was submitted that the delayed completion of a market shelter at Bweupe market was because the council had three projects which were being worked on in the same year therefore could not finish all as planned.

The market shelter at Bweupe was completed and ready for verification.

Management would ensure projects were spread to avoid delays in completing the projects.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

f. Management of Liabilities i.


Failure to Remit Statutory and Other Obligations It was submitted that the failure to remit statutory obligations to Zambia Revenue Authority (ZRA), NAPSA, LASF, ZULAWU, NHIMA, Madson Life and ZCTU amounting to K4,865,508, was due to liquidity problems on the part of the local authority.

The Council had an agreement with NAPSA of liquidating the historical arrears with a monthly payment of K10,000.

For ZRA, the Council had applied for amnesty which was approved.
As for NHIMA, Madison life and ZCTU balances had since been cleared.

The Council remained committed to the liquidation plan with NAPSA and LASF.

The Council would continue paying the current contributions to avoid arrears.

351 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the settling of outstanding statutory liabilities without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Settle Staff Obligations It was submitted that the Council had since paid K103,589.51 towards Terminal benefits, Cleared the K76,874 for settling in allowances and paid K272,132.65 towards salary arrears between 1st January 2022 and 31st January 2023.

The Council would continue liquidating the outstanding staff obligations.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the settling of outstanding statutory liabilities without delay.
The Committee will await a progress report on the matter.

Mpulungu Town Council Paragraph 45 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K21,567,939 against which amounts totaling K14,041,674 were received and generated resulting in a negative variance of K7,526,265.

See table 1 below.
Table 5: Budget and Income 352 No.Source of FundsBudget KIncome KVariance KLocally Generated1Local Taxes/Rates1,087,445 1,641,047 553,602 2Fees & Charges948,030 614,848 (333,182) 3Licenses11,300 248,147 236,847 4Levies7,255,200 475,560 (6,779,640) 5Charges and other Income1,318,363 167,770 (1,150,593) Subtotal10,620,338 3,147,372 (7,472,966) National Support6Local Govevernment Equalisation Fund9,347,601 9,294,302 (53,299) 7Constituency Development Fund1,600,000 1,600,000 - Subtotal10,947,601 10,894,302 (53,299) Total21,567,939 14,041,674 (7,526,265) Management Response Local Taxes and Owner’s Rates: Property Rates It was submitted that the Local Authority over collected K533,602 in the year 2021as it was observed by the Auditors.
The over collection of property rates amounting to K553,602 was due to the fact that ZESCO defaulted in 2020 and paid the rates in 2021 hence over collection of property rates.

The Local Authority would engage rates payers to be paying the rates within the same financial year.

The Local Authority would endeavour to quarterly renew the Budget performance.
Fees and Changes The under collection of fees and charges amounting to K333,182 was due to the fact that Zesco removed the bill boards which the Council had based its budget and also failed to implement the increase of truck levy from K10 to K50.

The Local Authority had revised the budget for 2022 down wards considering the Zesco pulling down of bill boards and maintained a K10 truck levy.
The Local Authority would endeavour to base its budget on the local revenue base and also embark on the construction of the trucking bay to enhance revenue collection.

Licences: The Local Authority over collected by K236,847 due to total implementation of SI, 87 of 2012.

The Local Authority had adjusted its 2022 budget by considering the over collection of licences amounting to K236,847 in 2021.

The Local Authority had established the revenue base.
Levies: On Levies, the Local Authority submitted that the figure amounting to K6,779,640 was under collected due to the anticipation of business booming of fish business and introduction of a vessel (Amani’ trading) from Congo DR to Zambia.

The Local Authority would make sure that Budget was as realistic as possible The Local Authority would be acting on the result of the budget review.
Charges and Other Incomes: The Local Authority anticipated making profit from its commercial venture, upon been rehabilitated, however the renovation did not take place due insufficient funds hence failing to collect K1,150,593.

353 The Local Authority had provided for Renovation of Mbita Rest House kitchen for phase 1 in the 2023 budget.

The Local Authority would not budget for the income from the Commercial Venture until the renovation of the infrastructure is complete.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that realistic revenue targets are made during the preparations of the budgets.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.
b.

Management of Assets - Failure to Maintain Public Roads It was submitted that the road had not been maintained within 5 km District Boundary due to lack of funds and equipment.

The Local Authority had engaged Road Development Agency (RDA) to patch the affected portion of the road which had since commenced the rehabilitation.
The Local Authority had planned to procure Hand-held equipment in the year 2023 under constituency development fund (CDF) which would be used for rehabilitation and maintenance of roads within the District.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Constituency Development Fund i.


Construction of a Staff House at Kapoko Primary School – Stalled Project It was submitted that the local authority had failed to complete the project in Eight weeks due to sufficient funds.

The Local Authority had written to Kapoko Ward Development Committee to apply for Constituency Development Fund for completion of stalled projects.
354 The local authority would endeavour to give full contracts and engage Constituency Development Fund Committee (CDFC) to fund projects as per engineers estimates.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without any further delay.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

ii.

Completion of a 1x2 Classroom Block at Chifungo Community School – Delayed Completion It was submitted that the Local Authority had failed to complete the project in 12 weeks as completion time, due to the lack of commitment of the bricklayer and limited resources for monitoring and inspection and insufficient funds for the project.
The Ministry of Local Government and Rural Development had approved additional funding and the contractor was engaged to complete the works.

The local authority shall endeavour to fund projects to completion, regularly monitor, inspect projects and give full contracts.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without any further delay.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.

Completion of a 1x2 Classroom Block at Katulo Primary School – Delayed Completion time due It was submitted that the Local Authority had failed to complete the project in 5 weeks as the mode of completion implementation.
The Ministry of Local Government and Rural Development had approved additional funding and the contractor was engaged to complete the works.

insufficient funding, monitoring, inspection and The local authority shall endeavour to give full contracts and intensify monitoring and inspection of the projects.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without any further delay.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

355 iv.

Completion of a 1x2 Classroom Block at Kapata Community School – Delayed Completion It was submitted that the local authority had failed to complete the project in six weeks due to insufficient funding, monitoring and project inspections.
The Local Authority has written to Kapata Ward Development Committee to apply for Constituency Development Fund for completion of stalled projects.

The local authority shall endeavour to give full contracts and engage constituency development fund committee (CDFC) to fund projects as per engineers estimates.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without any further delay.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Construction of a 1x2 Classroom Block at Yamwela Primary School – Stalled Project It was submitted that the project had stalled due to the insufficient funds, monitoring and inspection.
The Local Authority had engaged a contractor for the construction of the Ix2 CRB at Yamwela Community School in Chisha ward.

As soon the road became accessible the contractor would be on site to execute the works.

The Local Authority would utilise the soon to be procured Earth Moving equipment to open up the feeder for easy access and transportation of goods and services to remote areas in the District.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without any further delay.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

c. Management of Local Government Equalisation Fund i.
Failure to Transfer Funds to the Project Account It was submitted that the local authority had transferred K300,000 in order to refund K120,543 which was not transferred to Capital Account.

Item Borrowing Part Payment K300,000 Balance K120,543 Balance K179,457 The local authority has planned to be setting aside part of its funds from ZESCO property rates as additional funds to pay salaries.
356 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.Misapplication of Funds for Capital Expenditure It was submitted that the local authority had transferred K300,000 from Administration Account to capital account in order to recover the misapplied funds of K119,909.
The local authority had planned to be using its locally generated funds for stationery and meal allowances, in line with the regulations.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.
iii.

Unreimbursed Borrowings It was submitted that on 30th September, 2022 the Council transferred K300,000 to capital account as additional commitment to off-set the said K763,537, leaving an outstanding balance of K463,537.

The local authority had planned to be using its locally generated funds for day to day running of the Council in line with the regulations.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Liabilities Failure to Remit Statutory and Other Obligations d. i.

It was submitted that the Local Authority had started negotiating with some statutory bodies like NAPSA and ZRA.
Therefore, due to unstable cash-in-flow, the Council had started settling the statutory obligation in instalments when funds were available, since it could not manage to liquidate all the outstanding amounts at once.

Management had also engaged some statutory bodies in order to come up with payment plans on how best the arrears could be liquidated as a long-term solution.
The local authority was updating 2019 valuation roll, which would enhance revenue collection which would make it easier to liquidate statutory and other obligations.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that outstanding statutory obligations are liquidated without delay.

The Committee will await a progress report on the matter.

357 ii.
357 ii.

Failure to Settle Staff Obligations It was submitted that the local authority had planned to liquidate the staff obligation, although the amount was huge as compared to the local revenue collected on a daily basis.

The local authority was appealing to the Ministry of Local Government and Rural Development to be releasing the restructuring Grant that would assist to liquidate the huge debt owed to the staff.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that outstanding staff obligations are liquidated without delay.

The Committee will await a progress report on the matter.

Mulobezi Town Council Paragraph 46 Audit Findings An examination of accounting and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of some selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K12,272,201 against which amounts totaling K10,517,310 were actually received and generated resulting in a negative variance of K1,754,891.

See table 1 below.

Table 1: Budget and Income No.
Source of Funds Locally Generated Local Taxes Fees and Charges License’s Levies Permits Other Receipts Sub-Total ` National Support Local Equalisation Fund Constituency Development Fund Other Grants Sub-Total Budget K 13,125 1,732,498 10,440 486,844 56,400 138,000 2,437,307 Income Variance K K 6,985 358,055 9,420 283,017 34,110 138,075 829,662 (6,140) (1,374,443) (1,020) (203,827) (22,290) 75 (1,607,645) 8,048,004 (86,890) 1,600,000 1,600,000 - 100,000 9,834,894 39,644.00 9,687,648 (60,356) (147,246.00) Government 8,134,894 Total 12,272,201 10,517,310 (1,754,891) 358 In addition, amounts totaling K2,876,871 were brought forward from the previous year bringing the total funds available to K13,394,181.
Management Response Local taxes It was submitted that the reason for the under collection on the local taxes of K6,140 was as a result of the second quarter personal levy which was not remitted by the Ministry of Finance and National Planning to Mulobezi Town Council.

The funds were remitted in the year 2022.

The council had since been engaging the Ministry of Finance and National Planning on the timely remittance of personal levy.
Fees and Charges The reason for the under collection on the fees and charges of K1,374,443 was as a results of COVID-19 restrictions based on Circular No.

9 of 2021, which restricted the holding of meeting, when the Council had budgeted to offer plots, after approval by the full Council.

The council had since budgeted for two special planning meetings where interview shall be held.
Plans to engage the Constituency Development Fund Committee were underway so as to access part of the constituency development funds to service the said plots.

Levies The reason for the under collection was as a results of timber processing status which reduced activities in the district as compared to the 2020 performance.

Reference was made to the circular No.

9 of 2021.

Since the ban was lifted, the Council had seen an improvement in the levies collected in the year 2022.
The Council would ensure that budgeting was done in liaison with Ministry of Lands and Natural Resources on the statistics of concession licenses issued in the district.

The Council had placed check points in strategic places, one along simungoma– Machile Road, the other one on Machile - Luampa Road.

Permits The reason for the underperformance was due to the effects of COVID- 19 which mainly affected traders in the district by closing businesses.
The Council had since established a task force to enhance patrols within the district to ensure that the revenue collection was enhanced.

The Council had since been training the Ward Development Committee to help in the revenue collection process.

The Council had since been engaging stakeholder to ensure that stakeholders understood the 359 importance of paying Levy.

Also, routine spot checks had been enhanced to ensure compliance of stakeholders.

Check point along strategic roads had been placed.


Local Government Equalisation Fund The reason for not receiving the mentioned amount was due to deductions of audit fees, LASF, Union Dues and training of councillors made at source.

The Council had since engaged the Ministry of Local Government and Rural Development for the need to increase Local Government Equalisation Fund.
The council had since been engaging the Ministry of Local Government and Rural Development on how best the funds deducted at source should be accounted for.

Also, regularly updating individual ledgers so that the expected funding was fully accounted for.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to put measures in place to enhance revenue collection.

The Committee also urges the Accounting Authority to be realistic when preparing the budget.
The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

b.

Operational Matters i.

Management of Land - Failure to Service plots It was submitted that the Council engaged the Ministry of Lands and Natural Resources on several fora to complete the phase two funding for Land Development Fund as this programme was initiated by the Ministry of Land and Natural Resources.
The scope of works for phase two included creation of access roads, water and electricity.

The funding was therefore not received from the Ministry.

The Council had created roads in the surveyed plots to enhance the marketability of the plots to would be developers with the use of locally generated revenue.

Ten General workers had been engaged to help vegetation control and opening up access roads in already beckoned areas.
The Council would ensure that all plots advertised had got access roads created in the township areas in line with The Ministry of Lands and Natural Resources Circular No.

1 of 1985.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Prepare Integrated Development Plan It was submitted that the Council did not have the IDP at the time of audit however, the Council relied on the joint exiting IDP which covered Sesheke, Mwandi and Mulobezi.

The Council received funds from Ministry of Local Government and Rural Development, amounting to K200,000 towards the preparation of an IDP for Mulobezi District.

360 The Council resolution to commence the process of IDP preparation was secured in December 2022 under Minute No.
MDC/34/12/22.

The planning programme which included the budget for the IDP process was made and submitted to the Provincial Planner for approval.

The Twelve Member IDP team had been constituted and orientated by the Provincial Planner (Western Province).

The Council had since commenced the formulation of the IDP covering the period 2023 – 2033 which was expected to be completed and functionalised by August 2023.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the IDP is prepared without delay.

The Committee also urges that submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.
iii.

Environmental Management – Poor Management of Dumpsite The Council had been operating in customary land which was difficult to put up some permanent structures such as fencing and supper structures.

The Council had since relocated the dump site to the state gazetted land.

So far, the works undertaken were as follows:  The Council had since Budgeted for fencing of the Dump Site in the Budget for 2023.

 The Sign post had been installed.


 Compacted the waste with a layer of soil thereby preventing any health hazards that could affect the community in line with the ZEMA regulations.

361 Management Response The Council would ensure the provisions of the Environmental Management Act No.

12 of 2011 and Environmental Management (Licensing) Regulations Statutory Instrument No.

112 of 2013 would be adhered to as recommended by Auditor General.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

c. Accounting for Revenue - Failure to Collect Revenue Telemast Levy The reason for the under collection on the Telemast Levy of K 11,000 was as a result of IHS not remitting funds on time to Mulobezi Town Council Inspite the invoice being submitted on time.
The Council managed to collect the stipulated funds amounting to 11,000 by March 2022 as per attached bank statement.

Plot Application The Accounting Authority submitted that the stated amount of K 12,500 was supposed to read K5,200, representing nine Commercial plots and six residential plots costing 500 and 100, respectively.
Apparently three Commercial plots and two residential plots had been paid for and the office had since written to the would-be developers to provide proof of payment if not to make a fresh payment to that effect.

The Council would ensure that only fully paid up applicants would be allowed to be interviewed for all plot categories in line with the land Acquisition Act, Chapter 189 of the Laws of Zambia.

Plot Premiums It was submitted that much of the would-be developers had paid.
The Council had since written to the developers to provide proof of payment.

The Council had collected a total amount of K 52,350 and had since written final reminders to would be developers to settle their obligation as per council resolution.

The Council would ensure that Plot premiums were collected on a timely basis preferably three Months.

If the plot premium had not been paid within three months the plot must be repossessed.
Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and ensure that the measures stipulated are realised without delay.

The Committee will await a progress report on the matter.

362 d. Management of Payroll and Other Staff Related Matters i.

Failure to Fill Vacant Positions It was submitted that this was due to the budget guild lines which stated that only filled up positions were supposed to be budgeted for.
The stated two key positions of Deputy Director of Works and Social Economic Planner had since been filled.

Management would endeavour to fill in any key vacant position in order to enhance quality service delivery in Mulobezi District.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

ii.
ii.

Irregular Payment of Training Expenses It was submitted that two officers were in division IV and did not need the approval from the local Government Service Commission.

The remaining five employees had already received the letters from the commission.

For the remaining officers, at the time of application, the commissioners’ sittings were suspended due to election.
Committee’s Observations and Recommendations The Committee urges the Accounting authority to ensure that regulations regarding sponsorship and training of officers are adhered to, to prevent wastage of public resources.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.
iii.

Procurement of Goods and Services - Failure to Withhold Tax on Rentals The Withholding Tax amounting to K9,765, had been recovered from the Landlord and remitted to the Zambia Revenue Authority as per Section 29 of the Zambia Revenue Authority Practice Note No.

1 of 2020.

Management would ensure that the provision of Section 29 of the Zambia Revenue Authority Practice Note No.

1 of 2020 were adhered to.


Committee’s Observations and Recommendations The Committee urges the Accounting authority to submit supporting documents to the Office of the Auditor General for audit verification.

e. Management of Assets – Failure to Secure Title Deeds It was submitted that this was due to low cash flow in the period under review.

Management had since made follow up with the Ministry of Lands and Natural Resources and obtained invitation to treats for the said properties.
363 Committee’s Observations and Recommendations The Committee urges the Accounting authority to ensure that titled deeds are acquired without fail.

The Committee will await a progress report on the matter.

f. Management of Constituency Development Fund (CDF) i.

Construction of 1x2 CRB at Mabombo Primary School It was submitted that the Council had since terminated the contract of the contractor who vacated the site and engaged a new contractor on labour basis.
The outstanding works which included fitting of window and door frames, internal and external plastering, glazing, construction of apron and drainage and painting have since been completed.

Plastered walls, flooring, drainage and fitted window and door frames for 1X2 Classroom Block at Mabombo Primary School.

Committee’s Observations and Recommendations The Committee urges the Accounting authority to be proactive and desist from taking action after the audit process.
The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Construction of Mortuary RHC – Delayed Completion.

It was submitted that the Council had since completed the mortuary as per contract terms.

The outstanding works which included wiring and painting, construction of super structure and block work had since been completed.
364 365 Committee’s Observations and Recommendations The Committee urges the Accounting authority to submit supporting documents to the Office of the Auditor General for audit verification.

g. Management of Liabilities i.

Failure to Settle Statutory and Other Obligations It was submitted that the failure to settle outstanding statutory and other obligations amounting to K1,229,659, was necessitated by low cash flow in the financial year under review.
Management had since put in place a payment plan to help liquidate the outstanding liabilities.

The Council has committed a monthly payment of K15,500 towards Outstanding Pay As You Earn (PAYE) to the Zambia Revenue Authority (ZRA).

The Council had also committed monthly payment of K50,000 towards outstanding contributions to National Pension Scheme Authority (NAPSA).
The Council had come up with revenue innovations so as to improve the cashflow of the Council, which included Aqua Culture Fish Farming Project with the capacity of 43000 fingerlings.

This would help in liquidating the outstanding Liabilities.

The Council would ensure that all liabilities were settled as soon as possible.
Committee’s Observations and Recommendations The Committee expresses concern at the failure to pay statutory obligations and urges the Accounting authority to prioritise the payment of the outstanding obligations without delay.

The Committee will await a progress report on the matter.

ii.

Failure to Settle Staff Obligations It was submitted that the failure to pay was necessitated due to low cash flow in the financial year under review.
The Council had since settled the outstanding K3,529 towards Settling Allowances for one officer.

The Council had also put in place a payment plan to help liquidate the outstanding liabilities for the Retiree.

Committee’s Observations and Recommendations The Committee expresses concern at the failure to pay staff obligations and urges the Accounting authority to prioritise the payment of the outstanding obligations without delay.

The Committee will await a progress report on the matter.
Mungwi Town Council Paragraph 47 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K20,435,759 against which amounts totaling K16,985,786 were received and generated resulting in a negative variance of K3,449,973.

See table 1 below.
See table 1 below.

366 Table 6: Budget and Income In addition, amounts totaling K4,139,115 were brought forward from 2020 bringing the total funds available to K21,124,901.

Management Response Local Taxes The Council budgeted residential and industrial/commercial property owners in the district and from personal levy charged on residents but only collected K85,213 resulting in an adverse variance of K216,368.
to collect K301,581 in Local taxes from The low collection of property rates was due to unwillingness by property owners to pay for their bills.

This was despite the local authority engaging the residents on the importance of paying the same tax.
The Council undertook the following actions:  carried out sensitisation activities on community radio station, Public Address system   announcement and public notices; the Council had written to Payroll Management and Establishment Control (PMEC) on the non-remittance of Personal Levy; and the Council had been distributing demand notices for payment of property rates coupled with sensitisation.
The Council would continue with sensitisation programmes with rate payers to ensure they settled all bills issued to them timely.

ii.

Fees and Charges The Council budgeted to collect K3,738,295 in fees and charges but only collected K914,548 resulting in an adverse variance of K2,823,747.
The negative variance on fees and charges was as a result of Ministry of Local Government and Rural Development’s suspension of sale of land, leasing of other Council assets and dispute on 367 No.Details Budget K Income K Variation K 1Local Taxes301,581 85,213 (216,368) 2Fees and Charges 3,738,295 914,548 (2,823,747) 3Licences 174,023 114,648 (59,375) 4Levies15,006 52,877 37,871 5Permits 130,030 35,661 (94,369) 6Commercial Venture50,250 412 (49,838) sub total 4,409,185 1,203,359 (3,205,826) National Support7LGEF (Equalization Grant)8,449,206 8,305,089 (144,117) 8Constituency Development Fund (CDF)1,600,000 1,600,000 - 9Other Grants5,977,368 5,877,338 (100,030) subtotal16,026,574 15,782,427 (244,147) Grandtotal20,435,759 16,985,786 (3,449,973) the serviced land with local traditional leaders.
The sale of land was the major source for fees and charges for Mungwi Town Council.

The Council undertook the following actions: the Council had since formed a Task Force on revenue collection;   settle land dispute on the serviced land with local traditional leaders in order to collect revenue from the allocated land; and  procurement of a Motor vehicle to improve on the mobility for revenue collection.
The Council would continue to sensitise the community on the need to pay fees and charges for better service delivery.

iii.

Licenses The Council budgeted to collect K174,023 in licenses but collected K114,648 resulting in an adverse variance of K59,375.

The Council was unable to collect the budgeted amount on business licenses due to mobility challenges hence most of the revenue centres were not reached.
While on the other hand some traders in the rural parts of the district were unwilling to pay the levy.

The Council undertook the following actions:  the Council formed a Task Force for collections of revenue and continuous sensitisation to business houses on the need to pay the licenses to Mungwi Town Council;  updating of database for all registered businesses operating in the district was also done; and the Council agreed with traders on the payment plan options.
 The Council to continue with sensitisation programmes on the need to pay for the licenses.

iv.

Levies The Council budgeted to collect K15,006 in levies but collected K52,877 resulting in a favorable variance of K37,871.

The over collection on levies was due to unexpected demand of sand (laterite) being used for construction of water treatment plants in Kasama District.

The Council revised the budget for levies taking into account the anticipated demand.
The Council would continue to explore untapped revenue.

v. Permits The Council budgeted to collect K130,030 in permits but collected K35,661 resulting in an under-collection of K94,369 368 The Council failed to collect the budgeted amount on business permits due to lack of transport to most of the revenue centres.

The Council formed Task Force for collections of revenue and continuous conducting of sensitisation to business houses on the need to pay the permits to Mungwi Town Council.
Further, the Ministry of Local Government and Rural Development had given the Council authority to recruit fire officers who would be conducting inspections for fire certificates.

vi.

Commercial Ventures The Council budgeted to collect K50,250 in terms of commercial venture profits but received K412 resulting in an adverse variance of K49,838.This was attributed to the fact that Ilamfya Guest House was not fully operational because it was under renovation.
The Council undertook the following actions:  Ilamfya Guest House was renovated in terms of Bar, Rooms and Kitchen which were operational.

 The Conference Hall was under construction and works were at 80 percent completion.
During renovation After renovation Conference hall The council undertook the following remedial measures:   the Council intended to complete renovating the remaining works at the conference hall to enhance revenue performance; and the Council intended to revamp on gardening and chicken rearing so that the cost of buying supplies from outsiders is reduced.

i.
i.

Local Government Equalisation Fund The Council budgeted to receive K8,449,206 in terms of LGEF but only received K8,305,089 resulting in an adverse variance of K144,117.

The variance on LGEF was due to the deduction at source in some months, for LASF and ZULAWU.

Management would continue to adhere to the regulations on the administration of the Local Government Equalisation fund.
369 The Council would continue to engage the Ministry of Local Government and Rural Development on the need to increase Local Government Equalisation fund from the current K814,100.55 to K1,176,000 to enable the Council meet total costs of; 20 percent capital component, Councillors monthly allowance and workers’ salaries at gross.

ii.

Other Grants The Council budgeted to receive K200,000 in terms of Grant in lieu of rates but only received K100,000 resulting in an adverse variance of K100,000.
The variance was due to the Ministry of Local Government and Rural Development not funding in full, the Grant in lieu of rates.

The Ministry of Local Government and Rural Development was engaged for funding of the balance.

The Council would continue to engage the Ministry of Local Government and Rural Development on funding as budgeted.
Committee’s Observations and Recommendations The Committee notes the response on the budget and income and therefore urges the Accounting Authority to put measures in place that will augment the collection of revenue without any further delay.

The Committee will await a progress report on the matter.

b.

Accounting for Revenue - Failure to Collect Revenue i.
Rentals it was submitted that the under collection from rented Council buildings was because tenants were unwilling to pay especially the officers of the Mungwi Police Club who were owing K17,420, District Commissioners officers who were owing K29,350 and National Registration Department who were owing K40,800.

The Council wrote to the Permanent Secretary -Northern Province and Officer In Charge Mungwi Police Station on how best the institutions could liquidate the outstanding rental charges.
To date the Council was still awaiting responses.

ii.

Crop Levy This was the outstanding revenue from Food Reserve Agency amounting to K353,357.10 due to the Council for Crop levy but they were unwilling to pay even after issuing several reminders.

The Food Reserve Agency had maintained that grain levy was not applicable to them, as they did not deal in maize trading.
The Council wrote to Food Reserve Agency, and was in consultation with Ministry of Local Government and Rural Development on how best to collect the outstanding crop levy.

370 The Council would continue engaging the Ministry of Local Government and Rural Development on the matter.

iii.
iii.

Property Rates The under collection on property rates was due to resistance by the property owners towards the payment of property rates, despite the local authority engaging the residents on the importance of paying the same tax.
The Council undertook the following actions:  It was submitted that the Council interventions were instituted to collect the outstanding owners rates through sensitisation, community radio station, Public Address system announcement public notices; and  The Council issued demand notices to defaulting property rate payers.

The Council would continue with sensitisation programmes and issuance of demand notices to rate payers to ensure they clear all bills issued to them timely.

iv.
iv.

Lease of Equipment The tipper truck was hired by former Member of Parliament for Malole Constituency amounting to K7,500 which had not been paid for at the time of audit even after issuing out the demand letters.

It was alleged that he gave K7,500 to the Former Council Chairperson with instructions to pay to Mungwi Town Council as settlement of hire fees.

Management had written to the former Member of Parliament for Malole Constituency to follow up on the non-payment for hire of tipper truck.
c. Management of Payroll and Other Staff Related Matters - Employment of Casual Workers The Council had engaged the workers on contract basis because they were necessary and critical as they formed part of the core mandate of service provision to the community.

However, the Council could not seek authority to employ because at that time the Ministry of Local Government and Rural Development had suspended authority to employ Division IVs because most of the Councils were failing to meet payroll obligations.
The Ministry of Local Government and Rural Development had granted authority to employ under Minute No.

MLGRD/52/17/83.

The employees had been recommended for placement on Permanent and Pensionable employment.

It was submitted that Mungwi Council had been deducting NAPSA from its contractual employees and submitting returns to NAPSA.

The Council would ensure that workers were not employed on temporal basis for works of permanent nature.
371 Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to ensure that the employment situation is normalised in line with the Employment Act, No.

3 of 2019. d. Management of Constituency Development Fund i.
Construction of a 1x2 Classroom Block at Kalembo Community School – Delayed Completion The Accounting Authority submitted that Kalembo Community School 1x2 class room block delayed to Commence due to none availability of upfront material to be provided by the community, this process to organise and provide materials on site took three and half months after signing the contract and that subsequently delayed the completion of the project.
The Council through the CDF Committee allocated funds under 2021 CDF Funding towards the procurement and delivery of the required upfront materials that were supposed to be provided by the local community.

The Contractor was on site to complete the project.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

ii.

Construction of a Maternity Annex at Nseluka Rural Health Post  Failure to follow Procurement Procedures It was submitted that the initial project was for construction of a Health post at Ngoli Rural Health post.

Procurement processes were concluded and the project was awarded to Chalali Construction and General Dealers Limited.
Later information was received that Ngoli Rural Health post was earmarked for construction of mini Hospital.

The project was redirected from Ngoli to Nseluka area as construction of a Maternity Annex at Nseluka Rural Health Post.

Since Chalali Construction and General Dealers was awarded the initial project, a no objection to single source was not sent to ZPPA taking into consideration that the contract was only coming for change of project name, bill of quantities, project site and designs.
Request was made to ZPPA for no objection clause and the Council was guided that the amount involved was within the threshold of the Council Secretary.

The matter was subsequently approved by the responsible approvals authority.

Management would ensure that whenever direct bidding method of procurement was used, request to single source would be approved by the responsible approvals authority.
372 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

 Stalled Works It was submitted that the project had stalled because the Contractor demobilised after receiving the latest instalment.

Upon being engaged, he demanded for additional funds way above the budget.
A further dispute ensued between the Contractor and Mungwi Town Council over the alleged over procured materials supplied and delivered on site, upon the Council’s intention to terminate the contract because of the delays in completing the project.

The Council had since terminated the contract with Chalali Construction and General Dealers and that all the outstanding works would be carried out by the Council through force account.

The project was expected to be completed by 31st March 2023.
The Council would ensure that disputes of such a nature were sorted out in the quickest possible time so as to avoid delays in completing projects.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

iii.
iii.

Construction of a 1x2 Classroom Block at Chitimukulu Community School – Delayed Completion It was submitted that Chitimukulu Community School 1x2 class room block delayed to commence due to non-availability of upfront materials to be provided by the community.

The process to organise and provide materials on site took over four months after signing the contract for the construction of a Community School and that subsequently delayed its completion.
The Council through the CDF Committee allocated funds under 2021 CDF funding towards the procurement and delivery of the required upfront materials that were supposed to be provided by the local community.

The Council had since terminated the contract with Kompes Enterprises Limited and that all the outstanding works would be carried out by the Council through force account.

The project was expected to be completed by 31st May 2023.
The Council would ensure that communities provided upfront materials before project implementation so as to avoid delays in project completion.

373 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

iv.
iv.

Construction of 1x2 Classroom Block at Maliko Mpange Primary School – Delayed Completion It was submitted that the Maliko Mpange Primary School 1x2 class room block delayed to commence due to none availability of upfront material to be provided by the community, this process to organise and provide materials on site took over four months after signing the contract.
The Council through the CDF Committee allocated funds under 2021 CDF funding towards the procurement and delivery of the required upfront materials that were supposed to be provided by the local community.

The materials had since been procured and delivered on site and the project was completed and in defect liability period.

Completed 1x2 C.R.B at Maliko Mpange Primary School.
The Council would ensure that communities provided upfront materials before project implementation so as to avoid delays in project completion.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

v. Construction of 1x2 Classroom Block at Bwebe Community School – Delayed Completion.
374 It was submitted that the Bwebe Primary School 1x2 class room block delayed to commence due to none availability of upfront material to be provided by the community.

This process to organise and provide materials on site took over four months after signing the contract.

The Council through the CDF committee allocated funds under 2021 CDF funding towards the procurement and delivery of the much needed upfront materials that were supposed to be provided by the local community.
The required materials had since been procured and delivered on site.

The project was completed and in defect liability period.

Completed 1x2 C.R.B at BwebeCommunity School.

The Council would ensure that communities provided upfront materials before project implementation so as to avoid delays in project completion.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
e. Management of Local Government Equalisation Fund i.

Failure to Reimburse Borrowed Funds It was submitted that the failure to reimburse borrowed funds was due to liquidity problems.

Management had made a repayment plan and was in the process of sourcing for funds to ensure that the above stated amount was reimbursed.

The Council had formulated taskforce to enhance revenue collection.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to desist from borrowing the capital project component of the equalisation funds and ensure that the outstanding balance is settled without delay.

The Committee will await a progress report on the matter.

375 ii.

Construction of Wall Fence at Civic Centre - Delayed Completion It was submitted that the wall fence at civic centre delayed to be completed due to challenges in transportation of construction materials.
The only utility vehicle available was the a tractor which was broken down and required repairing and servicing.

The tractor was repaired and serviced, all construction materials were delivered to site and Phase I of the project was completed as budgeted in the scope of work.

Front View Back View Side View The Council would ensure that projects of such a nature were implemented under full contracts to avoid delays and shift certain risks to third parties.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

f. Management of Liabilities i.


Failure to Remit Statutory and Other Obligations It was submitted that the non - payment of statutory obligations was due to financial challenges that the Council was facing as Local Government Equalisation Fund was not adequate.

The Council had since remitted Statutory Obligations amounting to K2,211,937 towards the Statutory Obligations as illustrated below.
376 The Council had devised payment plans in order to ensure that remittance of the current statutory contribution was consistent.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of statutory obligations without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Settle Staff Obligations It was submitted that the non-payment of staff obligations was due to financial challenges that the Council was facing as Local Government Equalisation Fund was not adequate.

The Council had since remitted staff obligation amounting to K112,471 towards the staff obligation as illustrated below.

The Council had devised payment plans in order to ensure that remittance of the current statutory contribution was consistent.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of staff obligations without delay.

The Committee will await a progress report on the matter.
377 S/NName Amount owed (K) Amount paid (K) Balance (K)1ZRA3,004,683 1,678,492 1,326,191 2NAPSA4,331,203 465,606 3,865,597 3NHIMA28,772 28,772 - 4ZULAWU29,356 29,356 - 5LASF7,306 5,169 2,137 6Supplier123,134 4,542 118,592 Total7,524,454 2,211,937 5,312,517 S/NName Amount owed (K) Amount Paid (K) Balance (K)1 Terminal Benefits 1,136,343 44,000 1,092,343 2 Salary Areas 199,325 24,882 174,443 3 Settling in Allowances 38,589 38,589 - 4 Long Service Bonus 132,204 5,000 127,204 5 Travel Benefits 232,034 - 232,034 Total1,738,495 112,471 1,626,024 Mwandi Town Council Paragraph 48 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K11, 325,704 against which amounts totaling K10, 564,733 were received and generated resulting in a negative variance of K760, 971.

In addition, amounts totaling K3,360,851 were brought forward from the previous year bringing the total funds available to K13,925,584.
Management Response Local Taxes It was submitted that the over collection on this Budget line was as a result of strategies (public sensitisation and efficient collection methods) put in place to improve locally generated revenue.

Mwandi Town Council had ensured continuous revision of the revenue collection process in 378 order to come up with the most effective and efficient method of revenue collection.
Mwandi Town Council would ensure prompt update of the revenue data base which would provide a basis for budgeting.

Mwandi Town Council was determined to continuously improve the collection of revenue.

Fees and Charges The under collection on the Budget line was as a result of poor response to the plot advertisement resulting in the failure to attain the budget target.
The cause of the underperformance in the collection of plot premiums was due to the fact that the applicants never responded to the Invitation To Treat that the Council sent to them.
In addition, the Council assumed that the applicants were no longer interested in the plots that they applied for because there was a clause in the Invitation to treat which stated that “In the event that the premium amount was not paid within a period of three months from the date given, Council would assume that the applicant was no longer interested in the plot and the same would be repossessed and be offered to another developer”.
The Council has sought for permission from Ministry of lands to attend to clients on the first come first serve basis.

Licenses The over collection on this Budget line was as a result of strategies such as the formulation of the Revenue Task Force, orientation of Revenue Collectors and Agents on the collection efficiency and updating of the revenue data base for easy monitoring and evaluation to enhance the locally generated revenue.
Mwandi Town Council had ensured continuous revision of the revenue collection process in order to come up with the most effective and efficient method of revenue collection.

Mwandi Town Council would ensure prompt update of the Revenue data base which would provide a basis for Budgeting.

Mwandi Town Council was determined to continuously improve the collection of revenue.
Levies The over collection on this Budget line was as a result of strategies such as the formulation of the Revenue Task Force, orientation of Revenue Collectors and Agents on the collection efficiency and updating of the revenue data base for easy monitoring and evaluation to enhance the locally generated revenue.

Mwandi Town Council had ensured continuous revision of the revenue collection process in order to come up with the most effective and efficient method of revenue collection.
Mwandi Town Council would ensure prompt update of the Revenue data base which would provide a basis for budgeting.

Mwandi Town Council was determined to continuously improve the collection of revenue 379 Permits The under collection on this Budget line was due to delayed enforcement of statutory obligations such as charges on the transportation of meat products and issuance of fire certificates.

The strategies to improve revenue collection were implemented.
The performance on the MTEF/ABB Budget 2022 was above 100 percent.

Mwandi Town Council had since implemented the statutory obligations such as charges on the transportation of meat products and issuance of fire certificates.

Mwandi Town Council would ensure prompt update of the Revenue data base which would provide a basis for Budgeting.
Other Income The under collection on locally generated revenue was mainly on the other income budget line, this particular budget line was used to provide for incomes that were not specified.

In the case of Mwandi Town Council, this budget line was used for the hire of Earth Moving Equipment (Tipper Truck, Backhoe Loader and the Tractor).

The Tipper Truck and the TLB had mechanical faults from July 2021 to September 2022.
Further the driver assigned to operate the machinery resigned, presenting additional challenges to the hire of the equipment.

The Council had since repaired the machinery and currently operational, further authority was sought from the Ministry of Local Government and Rural Development to employ a machine operator and the authority was granted, the operator had since been employed.
The Council had noted the financial loss due to the breakdown of the machinery and would endeavor to repair all machinery in time to avoid future loses.

Management would ensure that regular service on the Earth Moving Equipment was done.

National Support Local Government Equalisation Fund The under receipt on this Budget line was due to deductions at source such as LASF and ZULAWU.
Mwandi Town Council endeavored to update ledgers and effect the necessary changes as maybe guided by the Ministry of Local Government and Rural Development.

Mwandi Town Council would ensure that the budget was adjusted in order to reconcile the amounts received as Local Government Equalisation Fund and the amount Budgeted.

Other Grants This Budget was as a result of requesting the Ministry of Local Government and Rural Development for Financial Assistance.
Mwandi Town Council had continued to rely on the Ministry of Local Government and Rural Development for other grants when it faced liquidity challenges for meaningful municipality services.

380 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.

Operational Matters.

i.

Lack of Fire Fighting Services.


It was submitted that the Local Government Service Commission had not deployed fire officers to man the brigade.

The Local Government Service Commission directed to include a budget provision for the operationalisation of fire brigades at Mwandi Town Council and six officers had therefore been provided for in the approved budget.
Mwandi Town Council had made a provision in the Budget Estimates for the years, 2023-2025 period for the recruitment of Six fire officers as guided by The Local Government Service Commission in the letter 29th September, 2022.

Mwandi Town Council would ensure that Fire Officers were recruited as guided by the Local Government Services Commission once the budget was approved.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the fire service officers are recruited without delay.

The Committee will await a progress report on the matter.

ii.

Environmental Management.

 Poor Management of Mwandi Dumpsite.

It was submitted that the dumpsite was operated from Mwandi Royal Village where the Barotse Royal Establishment (BRE) was the custodian of land.
The Council had been given a temporal dumpsite awaiting allocation of a permanent site, Further, the fires at the unprotected relief dumpsite were caused by scavengers who in this given scenario had illegal daily access to the dumpsite.

Mwandi Town Council officially requested for a piece of land from The Barotse Royal Establishment (Mwandi Kuta) to construct a dumpsite intended for the facility to service Mwandi Royal Village.
The Council had covered waste with a layer of soil to avoid health hazards to the community.

381 The Council had also fenced the temporal dumpsite.

Mwandi Town Council in this particular aspect would endeavor to engage the Local leadership and the general public by way of community sensitisation on the significance of the dumpsite.

Going forward Mwandi Town Council would be using the Front End and Backhoe Loader to compact and cover the refuse with a layer of soil.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to as a matter of urgency re-engage the traditional leadership and have the dumpsite designated without delay.

The Committee will await a progress report on the matter.

 Lack of Waste Receptacles at the Market It was submitted that the Mwandi main market waste bins were worn out resulting in indiscriminate disposal of waste.
Further, it was submitted that Mwandi main market had a waste holding bay which was under utilised by the community.

Mwandi Town Council had since procured waste receptacles.

Mwandi Town Council had embarked on continuous community sensitisation by use of public address system on proper solid waste management to avoid indiscriminate disposal of waste.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

c. Accounting for Revenue – Failure to Collect Plot Premiums.

It was submitted that the failure to collect Revenue (plot premium) was due to poor response to the plot advertisement resulting in the failure to attain the Budget target.
Mwandi Town Council sought for authority to attend to plot applicants without an advert on a first come first serve basis from the Ministry of Lands (Provincial lands office) and authority was granted.

Mwandi Town Council had embarked on publicity through community sensitisation and opening up of feeder roads.

Further, Mwandi Town Council had opened up a commercial venture to make the plots more marketable in the township area.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the plots are offered without delay.

The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

382 d. Management of Local Government Equalisation Fund - Construction of a Shopping Complex.
It was submitted that the initial contract documents for Dukwi Mubi Contractors Limited were not availed at the time of the audit because the contracts were housed at the Ministry of Infrastructure Provincial Offices as the project was initially managed by the aforementioned.
The Project stalled because at the time of installing the roof, defects such as cracks on the load bearing walls were observed on the structure, which prompted Management to engage the Ministry Of Infrastructure Provincial Office who were in charge of the project from inception in order to conduct an assessment so as to come up with the best solution for the completion of the project.

The scope of works was specific to roofing only.


Further the total amount paid to the contractor as stated in the Auditor General’s report amounting to K393,701 was for materials on site, mobilisation and the advance payment.

It should be noted that, the amount totaling K861,217 were works certified by the Ministry of Infrastructure Provincial Office.

The issuing of Interim Payment Certificates (IPC’s), supervision and monitoring of works was solely done by the Provincial Office.
Furthermore, the poor workmanship was observed and the contractor was instructed to redo the works.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

e. Management of Constituency Development Fund - Failure to Utilise Completed Projects.
It was submitted that the utilised completed project under Lusinina was due to lack of staff accommodation.

Lack of running water and electricity made it difficult for the staff house at Sikuzu to be utilised.

The teachers opted to rent within Mwandi Royal Village where accommodation had running water and electricity.

The Council handed over the Lusinina Health Post and the Mother’s Shelter to the Ministry of Health District Health Office.
The Sikuzu Primary School staff house was equally handed over to the District Education Board Secretary for use.

Mwandi Town Council would constantly engage the relevant Ministries on the quick utilisation of all infrastructures (facilities) successfully completed and handed over to enhance service delivery.

383 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Nakonde Town Council Paragraph 49 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K37,481,445 against which amounts totaling K32,926,515 were actually received and generated resulting in a negative variance of K4,554,930 as shown in table 1 below.
Table 1: Budget and Income 384 In addition, amounts totaling K2,754,124 were brought forward from the previous year bringing the total funds available to K35,680,639.

Management Response The Accounting Authority submitted as set out below.

Locally Generated Revenue Local Taxes a.

1.

The Council collected more than what was budgeted as reviews for data base for employees liable to pay personal levy increased during inspections conducted in various businesses.
The Council had reviewed the qualifying employees that paid personnel levy in the district in addition to continued inspection of business premises.

Committee’s Observations and Recommendations The Committee observes that the Council is not realistic with the projected collections on local taxes and wonders the motivation behind the under projection.
The Committee finds this unacceptable and urges the Accounting Authority to intensify inspections and put other measures in place so that all illegible business houses were captured and have them pay taxes.

The Committee will await a progress report on the matter.

Fees and Charges 2.
Fees and Charges 2.

It was submitted that budgeted items under Fees and Charges which included: Survey fees; Container fees; Bus station and loading fees; and plot premium, were not realised as 104 residential plots (K13,000 per plot) which were advertised to the public and projected revenue amounting to K1,352,000 included in the year’s budget, were not all sold as the residents preferred to obtained customary land.
From this transaction only K94,945.70 was collected from the seven plots sold leaving the balance of K1,257,054.30 for the ninety seven unsold plots.

There were nine commercial plots (15,000) advertised, amounting to K140,000.

Only seven plots were sold amounting to K118,500 leaving the balance of K21,500 representing two unsold plots.

Further the area where the plots were located was far away from the CBD and therefore made it to be unattractive to would be developers.
Motor Vehicles e. This component in the budget, under Fees and Charges, accounted for K16,456,540 out of which K12,303,856 was collected.

The balance of the revenue not collected amounted to K4,152,684 due to the fact that the barrier which the Council had installed was away from the Customs Offices as a result, trucks which were destined for Nakonde Central Business District and Malawi were turning before the barrier and could not be captured.
The Council has decided to relocate the intercity bus station and timber traders from the CBD to Wulongo area in order to increase business activities and make the area attractive.

385 Committee’s Observations and Recommendations The Committee expresses extreme disappointment at the failure by the Council to meet its projected revenue target, which the Committee contends was understated going by numerous business activities taking place in the boarder town.
The Committee also frowns upon the Council’s submission on its failure to collect revenue from the barrier due to its positioning.

The Committee finds this unacceptable and urges the Accounting Authority to strengthen the monitoring systems and ensure that appropriate receipts are generated for use at all critical points by the revenue collectors, without delay.
The Committee also urges the Accounting Authority to involve relevant investigative wings to tighten the revenue leakages at the Council without fail.

The Committee will await a progress report on the matter.

Licenses 3.

Licenses were collected from retail shops, wholesales, restaurants, liquor and petroleum traders that operated within the districts.
The Committee was informed that Hawkers License which was set to be introduced was put on hold due to the threats of COVID-19, considering that Nakonde was along international borders prone to communicable diseases.

The Council had noted the great stability of not recording any COVID-19 variants and hence effected the collection of Hawkers Licence in the Financial Year 2023, amounting to K1,590, collected in a week, levied at K398 per annum.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that Licences are collected without exception.

The Committee will await a progress report on the matter.

Levies 4.

These were funds collected from charcoal levy, Timber levy, sand levy and bicycle levies, within the district.
During the period under review the Council collected more on timber levy which was budgeted at K18,250, against the actual collection of K213,225, resulting in an over-collection of K195,005.

In addition, an over-collection of K152,898 was recorded on bicycle levies which was budgeted at K65,292.

The Committee was informed that the increase in revenue was due to relaxed restrictions on cross border trading, post COVID-19 pandemic.
Committee’s Observations and Recommendations The Committee observes that the Council is not realistic with the projected collections on levies and wonders the motivation behind the under projection.

The Committee finds this unacceptable and urges the Accounting Authority to intensify inspections and put other 386 measures in place so that all illegible business houses were captured and have them pay levies without exception.

The Committee will await a progress report on the matter.

Permits 5.
Permits 5.

This was revenue collected from health permits, herbalists, burial permits, extension of business hours and pre-school permits.

The Committee was informed that the permits that were set to be collected where put on hold in view of continued surveillance of post COVID-19 variants considering that Nakonde was along international border prone to communicable diseases.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

6.

Commercial Venture The increased revenue was due to relaxed restrictions of cross border trading, post COVID-19.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

Other Receipts 7.

The variance on other receipts included the amount of commercial venture amounting to K216,000, the bank overdraft facility amounting to K680,000 and ZESCO way leave amounting to K180,836.
During the year under review, the Council decided not to get the overdraft after realising an increase in revenue.

The interest on savings was not collected because the savings account was not opened.

On ZESCO Way leave, only K102,750 was received.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

b.
b.

National Support Local Government Equalisation Funds.

8.

The variance on LGEF was due to deductions made at source for audit fees, union contributions and insurance for the fire tender.

The Council did not receive the Grant in Lieu of Rates which was budgeted.

387 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee resolves to close the matter subject to audit verification.

Constituency Development Funds 9.

The favorable variance on Constituency Development Funds was due to the bidding fees which were directly deposited into the account, amounting to K2,400, for all the 2021 projects.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from commingling of CDF funds with other funds.
The Committee, however, urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

Accounting for Revenue - under Collection of Motor Vehicle Charges b.
The Accounting Authority submitted that the variance on the motor vehicle charges was due to the fact that the barrier which the Council had placed was away from the Customs Offices as a result, trucks which were destined for Nakonde Central Business District and those proceeding to Malawi were turning off before the barrier.

Council officers were not able to capture these trucks which could have already been captured at Customs (ZRA).
It was also submitted that empty trucks returning from Tanzanian into Nakonde were not charged but the variance included the total amount for empty trucks, of K248,850.

The Council has since relocated the motor vehicle revenue collection point to Customs to ensure that all trucks were captured.

Further, Management was pursuing a contract with ZRA to enable the Council to be added on ZRA Single Platform, to ensure maximised capturing of Tucks.
The Committee was informed that all measures meant to maximise the capturing of Trucks entering the district were put in place in order to enhance revenue collection.

These measures included installation of an automated barrier/boom and cameras at the Customs exit gate in case the ZRA contract failed.

Committee’s Observations and Recommendations The Committee expresses extreme disappointment at the failure by the Council to meet its projected revenue target.
The Committee also frowns upon the Council’s submission on its failure to collect revenue from the barrier due to its positioning.

The Committee finds this unacceptable and urges the Accounting Authority to strengthen the monitoring systems and ensure that appropriate receipts are generated for use by the revenue collectors, without delay.

The Committee also urges the Accounting Authority to involve relevant investigative wings to seal the revenue leakages without fail.
The Committee will await a progress report on the matter.

388 c. i.

Management of Payroll and Other Staff Related Matter Over Employment of Staff The Accounting Authority submitted that the Council shall endeavor to observe the provision of the Council staff establishment and continue to engage the Local Government Service Commission on matters that required their attention.
Committee’s Observations and Recommendations The Committee expresses displeasure at the Laissez Faire attitude adopted by the Accounting Authority on the management of staff matters at the Council.

The Committee contends that the negligence of maintaining appropriate staff has an effect on the expenditure of the Council, which was struggling to meet other obligations due to narrow revenue base.
The Committee, therefore, urges the Accounting Authority to ensure that the Service Commission is re-engaged on the normalisation of the staff establishment to relieve pressure on the Council budget.

The Committee will await a progress report on the matter.

ii.

Failure to Confirm Staff The Accounting Authority submitted that officers had since been confirmed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for Audit verification.

The Committee will await a progress report on the matter.

a.
a.

Management of Assets - Failure to Claim Insurance The Accounting Authority submitted that the Council acknowledged the findings on BAJ 9979 ZM and wished to apologise unreservedly for the lapses.

The Committee was informed that the delay to report the accident to the insurance company was due to the funeral procession, as the officer who died in the same accident was a principal officer for Nakonde Town Council.
As regards the claim for compensation for vehicle registration number NAK 1, which was made late, it was submitted that this was because the accident happened in another district (Isoka) and it was during election period and all the senior council officers were engaged in the election processes, as a result there was no one to handle the matter.

For Toyota Hilux registration No.


ALL 7325 which was comprehensively insured with Zambia State Insurance Corporation (ZSIC), where the claim for compensation was lodged, but could not be honoured, the position was that, ZSIC could not honour the claim because the Council had contracted historical debt amounting K501,191.66.

Due to the urgent need to repair the vehicle, management decided to take the vehicle to a private garage at a total cost of K37,230.
389 The Committee was informed that management had put in place a cash plan to liquidate the historical debt and also assigned an officer dedicated to transport management of the Council fleet.

Management shall also ensure that the Cash Payment Plan was honored so as to avoid such occurrences in the future.

Committee’s Observations and Recommendations The Committee bemoans the Laissez Faire attitude adopted by the Council on the management of insured assets.
The Committee also finds unacceptable the excuses advanced by the Council when it had relevant departments to handle its assets, regardless of circumstances.

In this regard, the Committee urges the Accounting Authority to institute disciplinary action against the officers who neglected to report the accidents and failure to claim insurance.

The Committee will await a progress report on the matter.
e. Management of Ward Development Fund (WDF) The Accounting Authority submitted that the Council undertook several projects in various wards where payment was made from main account instead of WDF account and what was omitted was the element of transferring the 5 per cent WDF component from the main account into the WDF account.
The Committee was informed that management had since started transferring 5 percent of locally generated revenue to the Ward Development Funds Account and spending directly from the same.

In addition, the payment plan had been formulated to transfer the K245,029 collected, to WDF account.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

f. Management of Liabilities - Failure to Remit Statutory and Other Obligations The Accounting Authority submitted that the failure to settle statutory contributions was due to the accumulated historical debt incurred by the Nakonde Town Council, over the years.

The Council had committed to liquidate the historical debt by ensuring that the monthly contribution and part of the accumulated debt was paid on time.
390 The existing balances were tabulated below.
Details ZRA NAPSA (monthly) NAPSA(penalties) LASF MADSON FIRESUZ NHIMA ZCTU ZULAWU TOTAL Amount Owing 2,239,829 2,725,458 1,660,985 90,802 51,723 22,682 30,163 37,539 37,885 Amount Paid to date as at 31st December, 2022 736,940.69 926,461.06 620,605.89 16,893.99 29,438.40 13,318.96 31,151.11 5,024.16 Balance 1,502,886.31 1,798,996.94 1,040,379.11 73,908.01 22,284.60 9,363.04 (988.11) 32,514.84 44,945.28 (7,060.28) 6,897,066 2,424,779.54 4,472,284.46 Committee’s Observations and Recommendations The Committee finds unacceptable the failure by the Council to remit statutory obligations, when it had various sources of revenue to increase its capital base.
In this regard, the Committee urges the Accounting Authority to be proactive and ensure that all revenue streams available are followed up.

The Committee also urges that the outstanding liabilities are cleared without delay.

The Committee will await a progress report on the matter.
Nalolo Town Council Paragraph 50 Audit Findings An examination of accounting and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of some selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K11,747,324 against which amounts totaling K10,580,958 were actually received and generated resulting in a negative variance of K1,166,366.

In addition, funds amounting to K3,997,596 were brought forward from the previous year bringing the total funds available to K14, 578,554.
As at 31st December 2021 amounts totaling K11, 682,164 had been spent leaving a balance of K2, 896,390.

391 Management Response Local Taxes The Council planned to raise K115,000 in local taxes but collected K150,870 resulting in positive variance of K35,870 representing 131 percent.

K100,000 was budgeted for Grants in Lieu of Rates but K150,000 was received resulting a positive variance of 150 percent.
The funds were meant for the rehabilitation of Sianda School and repair of Nalolo Town Council utility vehicles.

Under personal levy, K15,000 was budgeted which was divided into K10,000 from civil servants working in the district and K5,000 from local business but only K870 was collected from local business resulting in a negative variance of 94 percent.

The negative variance on local businesses was as a result of interference by the Barotse Royal Establishment (BRE).
Management engaged PEMC and hence forth the Council had started receiving personal levy.

Further, management had engaged BRE to construct refuse bays, flushable toilets and install solar power water reticulation system using the 20 percent capital component of the Local Government Equalisation Fund in the 2023 budget to service the markets and business.
Fees and Charges The Council planned to raise K1,122,618 from fees and charges but collected K133,699, resulting in unfavorable variance of K988,919 representing 88 per cent of the budgeted amount.

This was as a result of poor response from the public despite the Council advertising for plots as access road had yet to be worked on.

Management had applied for land development under Ministry of Lands and intensified advertisement.
Licenses The Council planned to raise K2,500 from licenses but collected K1,250 resulting in unfavorable variance of K1,250 representing 50 percent of the budgeted amount.

This was as a result of interference in the licenses by The Barotse Royal Establishment (BRE) Management had engaged BRE to construct refuse bays, flushable toilets and install solar power water reticulation system using the 20 percent capital component of the Local Government Equalisation Fund in the 2023 budget to service the market.
This would be the basis for Council to collect revenue.

Levies The Council planned to raise K322,646 from levies but collected K29,142 resulting in unfavorable variance of K293,504 representing 90 per cent of the budgeted amount.

The district was divided into Nalolo West and East and in Nalolo West were most levies should be collected did not have direct route into Nalolo East were the offices were located instead 392 routes from Nalolo West passed through Senenga, Sioma and Mongu.
In the period under review, the Council had not yet deployed revenue collector but were depending on revenue agents.

The Commission had employed more revenue collectors and management had deployed revenue collectors in Nalolo West and East to enhance local revenue collection.

Further, management using the 20 per cent capital component of the Local Government Equalisation Fund in the 2023 budget would commence constructing revenue check point on strategic points in the district.
Permits The Council planned to raise K500 from Permits but collected K100 resulting in unfavorable variance of K400 representing 80 percent of the budgeted amount.

The K500 budgeted under permits was supposed to be collected together with licenses from restaurants but was affected because of the interference in the collection of licenses by the Barotse Royal Establishment as stated above.
Management had engaged BRE as detailed above under licenses Local Government Equalisation Fund (LGEF) The Council budgeted for K8,584,060 from LGEF but received K8,581,496 resulting in unfavorable variance of K2,564 representing 0.03 percent of the budgeted amount.

This was as a result of deduction at source.


The Council Management would engage the Ministry of Local Government and Rural Development to consider increasing the LGEF from K8,584,060 to K15,784,067.16 to cover up personal emoluments, 20 percent capital component, Council service provision and operations, statutory and staff obligations and councilor’s allowances.
Other Grants Nalolo Town Council received a positive variance of K84,401 for administrative purpose under Pilot Project for Climate Resilience (PPCR) which was winding up and was meant to facilitate pending administrative issues.

It was submitted that the PPCR projects had since been completed and all transaction closed.
Committee’s Observations and Recommendations The Committee notes the submissions made by the Accounting Authority on the budget and income but observes with concern that most of the revenue streams such as permits, were unrealistic and wonders why the Council could have realistically budgeted for the collection of K500 during the period under review.
The Committee, therefore urges the Accounting Authority to be proactive and ensure that the stipulated measures on each revenue stream are actualised without delay.

The Committee will await a progress report on the matter.

393 b.

Operational Matter – Environmental Management i.


Poor Management of the Muoyo Dumpsite It was submitted that the warning signs and fencing of the dumpsite had not been installed and constructed because the Barotse Royal Establishment (BRE) who were the owners of the land where the dumpsite was situated had not yet granted permission to undertake the said activities.

The covering of the solid waste was not being done because of lack of equipment at the site.
The Council management had managed to get permission from BRE to fence the dumpsite and displayed warning signs.

Consequently, the Council had provided in the 2023 budget for the undertaking of the above-mentioned activities.

The Council undertook to ensure that the fence and warning signs were installed at the dumpsite using the 20 percent capital component of the 2023 budget.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges the Accounting Authority to engage the Controlling Officer in the Ministry of Local Government and Rural Development to intervene in the matter of land with the traditional leadership.

The Committee further urges that supporting documents be submitted to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Failure to Provide Waste Receptacles ii.

The Council could not construct a refuse bay without the permission from the Barotse Royal Establishment (BRE).

Permission had been granted by BRE to construct refuse bays at both the Muoyo Royal Village and Litoya markets.

Further, the Council had already awarded the contract for the construction of a refuse bay at Muoyo Royal Village Market and construction works were under way.
It was also submitted that the two refuse bays at the two markets would be constructed and utilised accordingly using the 2023 budget.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the refuse bays are constructed, without delay.

The Committee also urges that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
c. Management of Payroll – Employees Without Requisite Qualifications It was submitted that at the point of his appointment as Deputy Council Secretary, the Institute of Local Government Administrators of Zambia (ILGAZ), as an associate member, was as at the time of recruitment a prerequisite qualification for the position of Deputy Council Secretary and Council Secretary as provided in the Local Government Service Regulations, 1996.
394 Further, the mandate to employ and deploy Council staff was the preserve of the Local Government Service Commission.

The Council only received staffs that were deployed to it.

The Council Management would continue to engage the Local Government Service Commission for the need to employ qualified staff.

Further, the Chief Human Resource Officer engaged the cited officers to upgrade their qualification and they had since enrolled in tertiary institutions and were undertaking studies.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the Service Commission is re- engaged on the matter.

The Committee also urges that submit supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
d. Procurement of Goods and Services – Unsupported Payments It was submitted that the cited amount of K146,427 was expended by the Council as funds that were contributed by various local authorities for programmes that were coordinated by the Provincial Local Government Officer during the year under review.

All the supporting documents were available for verification.
In order to avoid this unfortunate situation from recurring, adequate clarification and information would be sought and be provided during future audits.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
e. Management of Assets – Lack of Title Deeds It was submitted that the intention of the Council was to process the five title deeds for all the properties at the same time.

Unfortunately this had caused a delay because the office block sat on traditional land and the Barotse Royal Establishment (BRE) was yet to grant authority for the conversion of the piece of land from customary to statutory tenure.
The Council proceeded to engage the Ministry of Lands and Natural Resources (MLNR) through the Provincial Office in Mongu and the process to acquire title deeds for the four properties that were situated on state land was underway.

Four site plans had been obtained from the MLNR and a payment of K4,000 had been made and were in the process of producing survey diagrams for the fifth parcel of land and submit to the BRE for concert.
The Council would continue the engagement with the Ministry of Lands and Natural Resources and Barotse Royal Establishment to quicken the process to obtaining the five title deeds.

395 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

f. Management of the Local Government Equalisation Fund i.
Failure to Reimburse Borrowings It was submitted that the borrowings were necessitated by the liquidity challenge and the need for the Council to undertake various activities just after the 2021 general election, and these included inauguration of the Council Chairperson, the orientation of newly elected Councillors, the formation of Ward Development Committees (WDCs), and the settlement of the NAPSA arrears.
Reimbursement of the borrowed money was being done, and so far a total amount of K125,000 had been paid out of K384,764 and the balance K259,764 would be paid as and when the money was available.

The Council would ensure to adhere to the 20 percent capital component of the Local Government Equalisation Fund and undertook to ensure that all the borrowed money were reimbursed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to desist from borrowing funds meant for capital projects, especially that the Council was not able to implement capital projects through its locally generated revenue.

The Committee also urges that the funds are paid back without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Construction of a Modern Market – Poor Workmanship It was submitted that the market shelter was not in use because of the following reasons: i. the non-operation of the new District Administration at Liliachi as all Government offices were still operating from Muoyo; and poor road network making it difficult to reach the site where the plots were located as they could only be accessed with 4X4 vehicles and oxcarts.

ii.
ii.

With regard to poor workmanship, it was submitted that this was due to the fact that at the time the construction of a modern market shelter was been implemented, Nalolo Town Council did not have the Director of Works but depended on the Provincial Administration which had assigned a building inspector to manage the project on behalf of the Council.

The assigned officer could not supervise the project regularly as required due to other office commitments at the province and distance to site.
The Council Management through the letter dated 19th November, 2019 and 18th August, 2021 had engaged Ministry of Lands and Natural Resources for the opening up of the planned area in the district.

Further, Council Management had proceeded to engage the contractor to rectify the defects.

396 The Council Management would enhance supervision of the projects to attain timely completion and quality.
Committee’s Observations and Recommendations The Committee bemoans the chaotic management of the project and the wastage of public resources as a result of lack of supervision and poor workmanship.

In this regard, the Committee urges the Accounting Authority to streamline the project management process by the Council and avoid duplication of tasks with the Provincial Administration, with regard to project management.
The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

g. Management of Constituency Development Fund i.

Completion of 1x2 CRB at Lushushwa Primary School It was submitted that the delay in the commencement of the works was due to the increase in the scope of works, and this arose following a strong wind that blew off the entire roof of the structure.
This was before the contractors could even mobilise to site.

It therefore became necessary to amend the scope of works to take into account the blown off roof.

This meant that the contractor had to delay moving on site.

The Nalolo Constituency Development Fund Committee (CDFC) had since allocated additional funds totaling K112,678.90, and this was during the meeting held on 9th December, 2022.
The Ministry of Local Government and Rural Development in a letter dated 2nd February, 2023 had approved the completion of Lushushwa 1 by 2 CRB.

The Council Management had engaged a contractor to complete the outstanding works on full contract.

In order to avoid a similar situation from recurring, the Council would ensure that works of this nature were issued on full contract basis and that quality of works would be strictly supervised.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee will await a progress report on the matter.

ii.

Construction of 1x2 CRB at Sinungu Primary School It was submitted that the delay in implementing the project was due to challenges in finding a contractor on labour based, willing to execute the works.

This was because of the insufficient funding that made it difficult to use full contract method.
As result, two potential contractors turned down offers to undertake the project citing remoteness of the area which required more allocation to the labour costs.

The other reason that contributed to delay in executing the project was lack of availability of crushed stones.

This material was accessed approximately 50 km away from site, and members of the community increased their prices after realising that it was the Council purchasing the materials.
The hardening of the cement was as a result of the cement getting into contact with moisture during transportation on the Zambezi River.

397 The contractor had been engaged to vary his labour cost to include supply of crushed stones so that he could proceed with casting of the ring beam and complete remaining works.

It was regretted that these projects were delayed as a result of challenges faced in procuring contractors.
The CDFC was making available sufficient funds that should allow all CDF community projects to be undertaken on full contract basis.

Committee’s Observations and Recommendations The Committee bemoans the failure to implement the project and expresses concern on the delay by the Accounting Authority to come up with measures to prevent the escalation of delays in implementing the Project.

The Committee urges that the project be implemented without any further delay.
The Committee will await a progress report on the matter.

h. Managing of Liabilities i.

Failure to Remit Statutory and Other Obligations It was submitted that the delay in paying statutory obligations to various institutions was as a result of liquidity challenges the council was faced with.

The Council with the support of the Ministry of Local Government and Rural Development had been clearing some of the outstanding arrears.
The Committee was informed that as at 14th March, 2023, the status of the accounts were as set out below.

1.

2.

3.

4.

5.

ZRA:Approval receipt of Tax Amnesty had been granted.

NAPSA: Council had paid in full the principle amount and only remaining with penalties.

LASF: All outstanding balance had been cleared.

PSPF: An outstanding balance of K20,450 was remaining.

ZISC: All outstanding balance had been cleared.


Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Failure to Settle Staff and Other Obligations It was submitted that the Council received staff from the Local Government Service Commission.
However, at the time of the audit, the Council had just received new members of staff and one officer had just retired and payments were done on a first come first serve basis.

Management had been settling staff and other obligations on a first come first serve basis apart from one officer who retired and Management had since started paying the retired officer in accordance with the payment plan.

1.

2.

3.

4.

Leave days had been paid, leaving a balance of K3,181.
Settling in allowance had been paid on a first come, first saved basis.

With regard to terminal benefits, Management had started paying the retired officer in accordance with the devised payment plan and K245,000 had been paid so far.

Sub Allowance ttransport had been paid on a first come, first saved basis as shown in the table below.

398 No.
Type Debt of Leave days Settling in Allowance Allowance to Councilors Terminal Benefits Sub Allowance / Transport Total Balance B/F as at 01.01.21 K 66,281 Obligation for 2021 Cumulative Total K K 66,281 Payments K 48,381 at Balance as 31.12.21 K 17,900 Payments K 14,900 58,372 7,306 65,678 51,994 13,684 13,258.13 30,000 258,000 288,000 288,000 0 at Balance as 31.12.22 K 3,181 425.87 - 405,132 405,132 28,013 377,119 227,119 160,132 89,500 89,500 9,000 80,500 66,800 13,700 154,653 759,938 914,591 425,388 489,203 279,203 210,000 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Namwala Town Council Paragraph 51 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K15,073,483 against which amounts totaling K12,692,582 were received and generated resulting in a negative variance of K2,380,901.

See table 1 below.
See table 1 below.

399 Table 1: Budget and Income In addition, funds amounting to K2,165,295 were brought forward from the previous year bringing the total funds available to K14,857,877 during the period under review.

Management Response The Accounting Authority submitted that the Council collected a total amount of K2,804,532 out of the targeted K4,871,499, giving a deficit of K2,066,967 from local revenue as follows:- i.
Local Taxes The projected amount was over estimated during budgeting period as it did not take into consideration the effect of COVID-19 on business operations leading to poor performance.

The amount had since been revised in subsequent periods.

ii.

Fees and Charges: The Council planned to raise K3,093,704 in fees and charges but collected K1,399,067 resulting in an adverse variance of K1,694,637.
This was mainly because the Council had planned to drill commercial boreholes within and outside the district.

However, due to the breakdown of drilling rig, the Council did not raise funds from drilling of commercial boreholes.

Further, the Council had had received some applications for land conversions but could not materialise due to lack of consent from the community, resulting into the non-payment of conversion fees.

iii.

Permits It was submitted as set out below.


a) The Council Rig which had broken down had been repaired and it would favourably contribute towards income under commercial borehole drilling in subsequent periods.

b) Budgets were revised for subsequent periods to be more realistic following the ministerial guidelines.
400 No.Source of Funds Budget K Income KVariance KLocaly Generated1Local Taxes76,02012,840(63,180)2Fees and Charges3,093,7041,399,607(1,694,097)3Licences50,43880,75030,3124Levies1,048,3721,143,10494,7325Permits395,382170,841(224,541)6Commercial Venture- (2,610)(2,610)7Other Receipts207,583- (207,583)Sub Total4,871,4992,804,532(2,066,967)National Support8Local Government Equalisation Fund8,601,984 8,288,050(313,934)9Constituency Development Fund1,600,000 1,600,000- Sub Total10,201,984 9,888,050(313,934)Total Income15,073,48312,692,582(2,380,901) Committee’s Observations and Recommendations The Committee expresses concern at the inability by the Council to collect revenue as projected.
In this regard, the Committee urges the Accounting Authority to put measures in place that will enhance the revenue collection measures in place so that the Council is able to meet its revenue targets without fail.

The Committee will await a progress report on the matter.

c) Environmental Management i.

Management of Chinyemu Dumpsite  The Council operated Chinyemu dumpsite without approval from Zambia Environmental Management Agency (ZEMA).
 The Council did not compact or cover the waste with a layer of soil but instead waste was being burnt thereby exposing the community to health hazards.

 The dumpsite was not fenced for protection from access by unauthorized persons.

See pictures below.

Dumpsite not fenced and Uncompacted solid waste Management Response It was submitted that the process of formalising the operations of the dump site had commenced.
So far, the consent letter from the area chief had been obtained and the matter would be presented to the Council as per procedure.

An application had also been made to ZEMA.

Further, it was submitted that the fencing of the dumpsite had commenced.

So far, fencing poles had been erected on site.

401 The Council would endeavor to implement the requirements of Section 46 (3) of the Solid Waste Regulation and Management Act, No.

20.
20.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to desist from taking action after the audit process.

The Committee urges that the dumpsite must be fenced and waste compacted without delay.

The Committee will await a progress report on the matter.

ii.

Lack of Receptacles at Markets and Bus Station It was submitted that the waste in the market and bus stations was collected twice a week.
Further, it was submitted that the construction of refuse bays in strategic places had been budgeted for in the 2023 budget.

It was submitted that the Council would endeavor to implement all the capital projects budgeted for to ensure that service delivery was enhanced.

Committee’s Observations and Recommendations The Committee bemoans the failure by the Council to provide waste holding bays at Namwala Market and bus station, contrary to the solid waste management regulations.
In this regard, the Committee urges the Accounting Authority to be proactive and ensure that the waste receptacles are provided without delay.

The Committee will await a progress report on the matter.

d) Accounting for Revenue i. Unaccounted for Revenue It was submitted that the amount in question was as a result of misappropriation of funds by a revenue collector.

The amount outstanding of K7,340 was under disciplinary process.
402 Management had set up a system of monitoring field cashiers and daily banking by all revenue collectors on a daily basis so that such matters were eradicated.

Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to secure revenue and the inordinate delay to establish the facts on the missing funds.

In this regard, the Committee urges the Accounting Authority to institute recoveries from the erring officer without delay.
The Committee will await a progress report on the matter.

Failure to Update the Valuation Roll ii.

It was submitted that the process of updating the valuation roll was completed and awaiting the award by the Rating Tribunal.

It was submitted that the Council would ensure that future Valuation Rolls shall be updated as they fell due.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the said valuation roll is updated without any further delay.

The Committee will await a progress report on the matter.

iii.

Failure to Collect Revenue It was submitted that the Council did not collect a total of K475,150 out of K1,498,000, for various reasons.

It was also submitted as set out below.

Rental Charges i.
Rental Charges i.

Out of the outstanding balance of K16,000, K10,000 had been collected and the receipts and deposit slips were available for verification.

Furthermore, the balance of K6,000 related to a tenant who had been evicted after failing to comply with the demand notice.

However, management was still pursuing the matter and would use all the means to recover the outstanding amounts.

Plot Premium - Market Stalls, Residential and Commercial ii.
Money amounting to K89,450 (Market stalls) and K274,500 (residential and commercial) related to members of staff of which Demand notices had been served and they had since applied for debt swaps against what the Council was owing them in form of salary arrears and settling in allowances.

It was submitted that all staff applicants would pay in full the required amount.

Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to collect revenue.
In this regard, the Committee urges the Accounting Authority to evict all the tenants failing to pay rental charges without delay.

The Committee will await a progress report on the matter.

403 iv.

Failure to Avail Authority for Plots Offered at Discounted Prices It was submitted that management issued plots among other applicants, to members of staff and councilors and a discount.
It was submitted that there was no authority from the Ministry and that demand notices were served to members of staff for the full amount and they had since applied for debt swap against what the Council owed them.

All councillors that got plots were also served with demand notices and follow ups were still being made to collect the total amount.

Further, the debt swaps had since been effected.


Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

e) Management of Payroll and Other Staff Related Matters i.

Failure to Fill Vacant Positions It was submitted that the 2021 budget for the Council had constrained revenue.
Therefore, it could not accommodate additional workforce.

It was submitted that the members of staff shared the work load required by the Council.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to engage the Local Government Service Commission on the matter.

The Committee will await a progress report.

ii.

Over Employment of Staff It was submitted that the Council had been operating with excess members of staff under the category of revenue collectors.
It was submitted that the Local Authority submitted staff statistical data on 3rd January, 2022 to the Local Government Service Commission through Minute LGSC/101/1/6 dated 3rd January, 2022.

In this report, the Local Authority indicated the four surplus revenue collectors as indicated in the Staff Establishment Register.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to desist from taking action after the audit process.
The Committee will await a progress report on the response from the Local Government Service Commission on the matter.

iii.

Failure to Confirm Officers It was submitted that the Local Government Service Commission had delayed in responding to the recommendation and submissions made by the Council.
It was submitted that the Local Authority did submit to the Local Government Service commission for confirmation of officers in division I, II and III and a number of follow-ups were made which resulted in the Local Government Service Commission demanding for resubmission.

404 Management would continue engaging the Local Government Service Commission to have the matter resolved.
Committee’s Observations and Recommendations The Committee notes the response and resolves to await a progress report on the matter.

iv.

Employees without Requisite Qualifications It was submitted that the Council had over the period received officers at different levels of the Council structure.

All officers under Divisions 1,2 and 3 were a preserve of the Local Government Service Commission and management may not have full control on appointments.
It was also submitted that encouragement to officers had been given so that they could upgrade their qualifications.

It was however, worth noticing that the recruitment of officers from division I to III was the preserve of the Local Government Service Commission and council was merely on a receiving end.

Management would continue engaging the Local Government Service Commission as the entity with the mandate to employ.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to re-engage the Local Government Service Commission on the matter.

The Committee will await a progress report.

Delayed Disposal of Disciplinary case v. It was submitted that the Recommendation to the Local Government Service Commission was made on 14th February, 2022.

A resubmission of the same case to Local Government Service Commission was made on 9th May, 2022.
The Council had not yet received a response and would continuously make follow ups on the matter.

Committee’s Observations and Recommendations The Committee expresses displeasure at the failure by the Commission to act on the disciplinary matter.

However, the Committee urges the Accounting Authority to institute recoveries of the misapplied funds from the erring officer without delay.

The Committee resolves to await a progress report on the recovery and disciplinary matter.
f) Management of Assets Failure to Insure Assets i.

It was submitted that management had only been insuring running vehicles and other assets had not been insured during the period under review.
It was submitted that all runner vehicles were insured during the period under review and would endeavor to insure all Council properties.. Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

405 Failure to Maintain Council Property ii.


It was submitted that the Council had an old structure that was built in the early 1970s to serve as a store room during the constructing of the Civic Centre.

Its structural strength had over the time weakened.

It was submitted that it had a lot of structural cracks both on the walls and on the slab the foundation was failing.

The Council under Minute floor which No.NTC/OC/49/12/22, Resolved to demolish the structure.
indicated that Management would implement the decision of the Council to demolish the old structure and secure other structures through maintenance.

Committee’s Observations and Recommendations The Committee notes the response and resolves to await a progress report on the matter.

h) Management of Local Government Equalisation Fund –Misapplication of Funds It was submitted that the Council had, due to liquidity challenges, been borrowing over the period, to cushion the wage bill for members of staff.
It was also submitted that the funds were borrowings meant to cushion the wage bill.

However, management had been paying back using local resources whenever possible.

The Council had since paid a total of K311,424.89.

Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council borrowed funds meant for capital projects, when it had other avenues to mobilise resources.
In this regard, the Committee urges the Accounting Authority to desist from the practice and ensure that the funds are paid back in full, without delay.

The Committee will await a progress report on the matter.

i) Management of Constituency Development Fund i.

Maintenance of Namusonde – Maala Road It was submitted that the works being referred were incomplete works.

The works halted due to a policy directive.
406 TransactionFrom District Council AccountTo Capital AccountAmount Paid backOct 02, 202205376943001070537704300197160,256.87Dec 30, 202205376943001070537704300197151,168.02311,424.89LGEF Capital Component - ReimbursmentLGEFcapital Component -ReimbursmentDescription It was submitted that the rehabilitation works stalled because of a policy directive to discontinue the works on 20th April, 2022, during the official visit by the Republican President that Central Government would take over and upgrade the road to a bituminous standard.
The scope of works was as follows:    five culverts installation; drift construction ; and earthworks (backfilling) The policy directive by the Republican President to discontinue the works was reported to the CDF committee and the Ministry of Local Government and Rural Development and the remaining materials like stones, gravel and sand were being stored at the Chief Mungaila’s palace and culverts were stored at the Namwala Civic Centre for future use.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Drilling of Sixteen (16) Boreholes-Delayed Completion It was submitted that the Rig had broken-down during the drilling of one the boreholes.
The Accounting Authority submitted that the boreholes were being drilled using a Council rig which developed a fault during drilling at Chitumbi Community School.

However, the rig had since been repaired using CDF and drilling would commence after the rain season.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the remaining boreholes are drilled without delay.

The Committee will await a progress report on the matter.
j) Management of Liabilities i.

Failure to Remit Statutory and Other Obligations It was submitted that the Council had not been able to liquidate statutory obligations due financial challenges.

It was submitted that the Council had no financial capacity to liquidate the balance or pay the statutory obligations as they fell due.

However, management had been able to pay a total of K86,885.68 for the period under review.
It was submitted that the Council remained committed in finding ways of improving revenue for the Council such as valuation roll updating, engagement of WDCs and revenue agents in far flung areas to assist in meeting Council obligations.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of statutory obligations to avoid violation of workers Conditions of Service and other regulations.
The Committee will await a progress report on the liquidation of the outstanding liabilities, without delay.

407 Failure to Settle Staff Obligations ii.

It was submitted that the Council had not been able to liquidate staff obligations as they fell due, due to financial challenges.

It was submitted that management had been able to pay a total of K220,720.57 as at 31st January, 2023 towards liquidating staff obligation.
It was also submitted that the Council remained committed in finding ways of liquidating its indebtedness through improving revenue for the Council in order to meet its obligations.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of staff obligations to avoid violation of workers Conditions of Service and other regulations.

The Committee will await a progress report on the liquidation of the outstanding staff obligations, without delay.
Nchelenge Town Council Paragraph 52 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K17,088,852 against which amounts totaling K12,871,313 were received and generated resulting in a negative variance of K4,217,539.
See table 1 below.

Table 1: Budget and Income 408 In addition, amounts totaling K3,161,777 were brought forward from the previous year bringing the total funds available to K16,033,090.

Management Response Local Taxes The Accounting Authority submitted that the under collection was due to low compliance by the local community.
The Committee was informed that the Council had issued demand notices to the rates payers and had been engaging the community through local radio stations and Ward Development Committees (WDCs).

Committee’s Observations and Recommendations The Committee expresses concern that the Council is not realistic with its budgeting.

In this regard, the Committee urges the Accounting Authority to be proactive and put measures in place to augment the collection of revenue.
The Committee also urges the Accounting Officer to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management Response Fees and Charges The Accounting Authority submitted that the under collection of fees and charges was due to the closure of Anvil Mining operations.
The Committee was informed that the Council had constructed a new revenue check point at Yenga barrier and constituted a revenue task force to intensify the collection of fees and charges.

The Council had also constructed a dry port to enhance revenue collection.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges the Accounting Officer to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management Response Levies The Accounting Authority submitted that the under collection of Levies was due to boundary dispute with Chienge Town Council.
The Committee was informed that the Council had reported the matter to the Ministry of Local Government and Rural Development and the boundary dispute involving Kabuta, Mukwakwa and Kafutuma had since been resolved.

409 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and put measures in place to augment the collection of revenue.
The Committee also urges the Accounting Officer to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Operational Matters i.

Environmental Management Poor management of Nchelenge Dump Site The Accounting Authority submitted that the dumpsite that was in use was temporal.

The Council had engaged His Royal Highness Chief Kambwali, requesting for land that would be used to create a permanent dump site.
The Committee was informed that a budget provision had been made The Council Management has made budget provision on the construction of a dump site once His Royal Highness availed a piece of land to the Council.

Committee’s Observations and Recommendations The Committee notes with dismay that the Council was challenged to designate any area within Nchelenge a dumpsite.
The Committee finds this unacceptable and urges the Accounting Authority to be proactive and re-engage His Royal Highness Chief Kambwali on the matter and the dangers of leaving in the Community without a dumpsite.

The Committee will await a progress report on the matter.

Indiscriminate Dumping of Waste The Accounting Authority submitted that the Council had established a refuse bay at a central point and the cited area had been worked on.
Committee’s Observations and Recommendations The Committee expresses concern at the Laissez Faire attitude adopted by the Council on the management of waste, as if it was not responsible to provide litter receptacles in public places.

What is so disappointing to the Committee is the reactive approach on addressing the matter.
The Committee, therefore, sternly cautions the Accounting Authority to desist from the practice and urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

Failure to Develop an Integrated Development Plan ii.
The Accounting Authority submitted that the failure was due to lack of manpower and financial constraints and that the Council was on course in the preparation of the Integrated Development Plan (IDP).

It was submitted that the process of developing an IDP was at planning, survey and issues report, since the Ministry sent supporting funds towards the IDP development programme.
Further the 410 District had received new officers such as District Agricultural Coordinating Officer (DACO), District Education Boards Secretary (DEBS) and District Fisheries officer, in the line ministries which were key to the development of the IDP.

Committee’s Observations and Recommendations The Committee expresses concern at the delay in the preparation of the IDP and contends that the lack of a plan was detrimental to the orderly and coordinated physical development of the district.
In this regard, the Committee urge the Accounting Authority to prioritise the preparation of the IDP without delay.

The Committee will await a progress report on the matter.

Failure to Maintain Firefighting and Prevention Services iii.

The Accounting Authority submitted that the Commission posted one fire fighter to Nchelenge and a unit had been created under works department.
The Committee was informed that the failure to maintain firefighting and prevention services was because the Council had no firefighters employed by the Local Government Service Commission during the period under review.

Committee’s Observations and Recommendations The Committee will await a progress report on the full operationalisation of the fire section.

Management of Payroll and Other Staff Related Matters Failure to Fill Vacant Positions c. i.
The Accounting Authority submitted that the responsibility to fill the positions lied with the Local Government Service Commission.

The Committee was informed that the Council had written to the Local Government Service Commission on the vacant positions and had since employed the Chief Human Resource officer and Internal Audit Assistant.

The Council is waiting for feedback from the Local Government Service Commission on the employment of a building inspector.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Over Employment of Staff The Accounting Authority submitted that the matter had been communicated to the Local Government Service Commission for action.

411 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to Confirm Officers iii.


The Accounting Authority submitted that the Council had written and submitted the letters of recommendation to the Local Government Service Commission regarding the matter of confirmations.

The Council had continued making follow ups to the Local Government Service Commission so that officers were confirmed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
d. Procurement of Goods and Services - Printing of Receipt Books from Private Institutions The Accounting Authority submitted that this was due to non-availability of receipt books at the Ministry of Finance and National Planning and failure by the Government Printers to deliver receipt books on time.

The Council ordered and paid for receipt books from Government Printers after the Ministry of Finance and National Planning failed to meet the demand.
However, the Government Printers took long to print the receipt books and did not print the required quantities.

Management Response The Committee sternly cautions the Accounting Authority to desist from engaging private firms to print receipts.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

e. i.
e. i.

Management of Assets Failure to Maintain Properties Civic Centre – Ladies’ Toilet The Accounting Authority submitted that the failure to maintain ladies’ ablution block was due to financial constraints.

The Committee was informed that the defects had since been worked on and the cistern and sinks were fully operational.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action 412 after the audit process.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

 Kashikishi Rest House The Accounting Authority submitted that Kashikishi guest house was in a dilapidated state due to lack of resources and at the time of audit the guest house was earmarked for demolition.
The Council had made a provision in the 2023 budget, on the reconstruction of a new guest house as the cited guest house had been demolished.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the guesthouse is reconstructed without delay.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Council Ablution Block at Kashikishi Market The Accounting Authority submitted that the non-functional cisterns and sinks at the Kashikishi market ablution block were due to high frequency of vandalism by the general public and financial constraints.

The Committee was informed that the ablution blocks were functioning properly and ready for verification.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

Management of Local Government Equalisation Fund Failure to Maintain Street Lights f. i.
The Accounting Authority submitted that the non-functional street lights were due to vandalism and theft of street lights components by the community.

The Committee was informed that the matter was reported to Zambia Police who brought the culprits to book and were serving in prison.
The Committee was also informed that the Council had made a budget provision for maintenance of street lights and would continue sensitising the community through Ward development committees (WDCs) and the local radio stations on the importance of preserving street lights and also conducting periodic patrols together with state police.
413 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

ii.
ii.

Construction of a Dry Port (Parking Bay for Trucks) The Accounting Authority submitted that the non-completion of works as well non connection of Electricity at the dry port was due to the delay by ZESCO Limited to supply the Transformer, despite paying for it.

The Committee was informed that the outstanding works of Borehole drilling, erosion protection slab, fabrication of tank stand had been completed.
Further the council had also constructed the ablution blocks and showers for truckers, awaiting connection of electricity by ZESCO Limited.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

g. i.
g. i.

Management of Liabilities Failure to Remit Statutory and Other Obligations The Accounting Authority submitted that this was due to financial constraints that the Council was going through.

The Committee was informed that the Council had signed a Memorandum of Understanding (MoU) with NAPSA and ZRA on the liquidation of outstanding debt through a monthly payment plan of K69,725.21 for NAPSA and K40,000 for ZRA, respectively.
The Committee was also informed that the Council had completely liquidated LASF debt.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.
Failure to Settle Staff Obligations The Accounting Authority submitted that this was due financial constraints.

The Council had been paying staff obligations as and when financial resources were available in order to reduce the staff debt and the Council had since paid a total amount of K 81,392.19.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.
414 Ndola City Council Paragraph 53 Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K130,765,655 against which amounts totalling K128,081,223 were actually received and generated resulting in a negative variance of K2,684,432.
Table 1: Budget and Income Management Response It was submitted that the under collection on local taxes was partly due to the closure of some companies and guest houses in order to mitigate the effects of COVID-19.

In addition, Ndola Lime, which owed over K4 million had been under receivership and communication with the liquidator, had been a challenge.
It was also submitted that a promotional discount was offered to all property owners in the month of December 2022 to encourage full payment of outstanding local taxes and over K5 Million was collected and a number of organisations had signed commitments for payment.

The Council had continued engaging rate payers on the importance of payment of Council taxes.
Fees and Charges / Other Receipts It was submitted that the over collection of fees and charges was as a result of wrong capturing of the collections under charges (entered as other receipts) in the table above where a K21,833,138 was budgeted and showing nil collections when in actual sense K21,057,142 was collected leaving K775,995 and a K15,450,658 collected against K18,099,203 on fees and charges, leaving a balance of K2,648,545 respectively.
415 It was also submitted that the variance was due to the impact of COVID-19 that saw a number of business operations halted or derailed.

It was further submitted that engagements with the business community were ongoing and a number of organisations had since signed commitment for payment.

The Council had continued engaging rate payers and all business owners on payment of various fees and charges and a standing Task Force was on the ground to enforce compliance.
Permits It was submitted that the over collection on permits was due to the relaxation of COVID-19 restrictions where bars and restaurants were opened and allowed to trade within the revised guidelines.

The Council had taken into account the increased amounts in the annual budgets and would endeavor to keep up the good performance.

The Council had introduced a one-stop-shop in revenue hall to encourage full compliance on all Council fees and charges pertaining to Business activities in Ndola.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Payroll and Other Staff Related Matters Employees without Requisite Qualification It was submitted that the mandate to employ was vested in the Local Government Service Commission and local authorities just received recruited staff.
The Council engaged the Local Government Service Commission through submission of staff returns which showed qualifications and vacant positions.

Further, the Council had since engaged the affected officers to upgrade themselves to meet the required qualifications for the positions they were holding and some of them had already enrolled in school.

Furthermore, the Council had written to the Local Government Service Commission seeking guidance on the officers without requisite qualifications.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

416 Failure to Confirm Officers on Probation It was submitted that the mandate to employ and confirm was vested in the Local Government Service Commission and recruited staff and made recommendations for confirmation.
The Council wrote to the LGSC to confirm the affected employees and was awaiting for the response on outstanding human resource matters from the Local Government Service Commission.

local authorities received just The Council wishes to report that the list of all officers on probation had been resubmitted for confirmation to the Local Government Service Commission and awaits response.

The Council would endeavor to ensure timely recommendations for officers serving on probation to be confirmed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Constituency Development Fund – Undelivered Materials – K76,800 The Council Management wishes to report that the cause of the query was due to failure by the club to resolve the wrangles regarding the ownership of the association.
This challenge made it difficult for the Council to collect and surrender the pockets of cement to the association that had disagreements.

The Council had since engaged the supplier (Zambezi Portland Cement) to refund the money paid for the pockets of cement.

The supplier had responded that since the company had already declared profits to the Zambia Revenue Authority, it would supply other goods with the equivalent value for another project, if approved.
The Council would ensure to adhere to the timely acquisition of goods and services from suppliers and utilisation by beneficiaries.

Committee’s Observations and Recommendations The Committee expresses displeasure at the failure by the Council to collect the paid for construction material.

The Committee finds the neglect unfortunate and urges the Accounting Authority to be proactive and ensure that the materials are collected unconditionally, without fail.
The Committee will await a progress report on the matter.

Management of Liabilities Failure to Remit Statutory and other Obligations – K124,049,446 It was submitted that the failure to remit statutory contributions and other obligations was as a result of liquidity challenges that the Council had been facing.

417 The Council had since engaged with NAPSA and LASF on payment agreements and a total of K1,207,965.82 and K3,186,326.86 had been paid in the period ending 31st December, 2022, respectively.
The Council was also actively engaging with ZRA on the amnesty procedures on the outstanding liabilities.

The Council had also reported and appreciated the Government for paying K6,068,941.60 towards dismantling PAYE debt to ZRA, on behalf of Ndola City Council, through Ministry of Finance and National Planning.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of outstanding statutory obligations as failure to do so was in gloss violation of the workers Conditions of Service and regulations.

The Committee will await a progress report on the matter.

Failure to Settle Staff Obligations – K33,182,420 It was submitted that the failure to settle staff obligations was as a result of liquidity challenges that the Council had been facing.
It was submitted that settling in allowances had been paid in full.
The Council had further put in place a payment plan for staff obligations and had since paid over K7 million for the Financial year ended 31st December, 2022 as shown below:  Terminal Benefits K3,969,674.91  Long Service Bonus K975,711.88  Half-Pay Salaries K125,754.00  Legal Cases K2,684,725.39  Total Paid K7,755,866.18 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Land Management Unaccounted for Plots It was submitted that the files for the thirty-one first time applicants were not yet processed at the time of the audit as the applicants had not yet fully complied with the conditions for offer of plots such as full payment of plot premiums and submission of vital documents.
The thirty-six alternative plots were also not finalised as the matters were in court so the plots had been reserved until disposal of the court cases.
The thirty-one first time applicants had been engaged to encourage them to fully comply so that the processing of the necessary documents could be finalised and twenty-seven files had been opened, out of thirty-one; as for the thirty-six alternative applicants, the matter was still in the courts of law and when disposed off, the files would be processed accordingly.
418 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Irregular Offer of Land by Ministry of Lands and Natural Resources It was submitted that the query was basically due to erroneous offer of LOT L/36303/M Chichele by Ministry of Lands and Natural Resources, hence causing double allocations.
The Council had written to Ministry of Lands and Natural Resources through the Chief Lands Officer requesting them to cancel the invitation to treaty issued on Lot L/36303/M Chichele and stick to the initial plan in order to accommodate the sixty-eight medium cost plots already allocated to would be developers and Council was still waiting response.
Committee’s Observations and Recommendations The Committee expresses extreme disappointment at the poor and irregular manner in which the Ministry of Lands and Natural Resources was administering land.

The Committee, therefore, urges the Controlling Officer in the Ministry of Local Government and Rural Development to seriously engage the counterpart in the Ministry of Lands and Natural Resources to prevail over this confusion without delay.

The Committee will await a progress report on the matter.
Ngabwe Town Council Paragraph 54 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a.
Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K12,569,123 against which amounts totaling K10,367,095 were received and generated resulting in a negative variance of K2,202,028.

See table 1 below.

419 Table 1: Budget and Income In addition, amounts totaling K1,186,980 were brought forward, bringing the total funds available to K11,554,075.
As at 31st December 2021, amounts totaling K9,867,898 had been spent leaving a balance of K1,686,177.

Management Response The Accounting Authority submitted as tabulated below.

420 No.
420 No.

Source of Funds Budget K Income K Variance K Management Response 1 2 3 Locally Generated Local Taxes 15,000 4,905 (10,095) The Council failed to collect an amount of K10,095 in Personal Levy as a result of the boundary disputes surrounding the Chief Mwinuna Chiefdom which had been contended that it should be part of Mpongwe District in Copperbelt Province and not Ngabwe District of Central Province.
This part of the District was where much of the economic activities in the District were concentrated and Mpongwe had been collecting much of the revenue in the area.

Fees and Charges Licences 650,650 89,539 (561,111) 50,800 71,822 21,022 Much of the fees and charges budgeted where related to plots which were not offloaded in the year under review.

The positive variance was as a result of good performance in the fees under Fire arm Licences.
421 4 Levies 516,366 319,982 (196,384) 5 6 7 Permits 200 17,550 (17,350) Commercial Venture - 198,257 (198,257) Other income Sub total 940,500 69,330 (871,170) 2,389,123 555,779 (1,833,344) 422 The Council failed to collect an amount of K196,384 in Levies as a result of the boundary disputes surrounding the Chief Mwinuna Chiefdom which had been contended that it should be part of Mpongwe District in Copperbelt province and not Ngabwe District of Central Province.
This part of the District was where much of the agriculture activities (Grain Levies) the District were concentrated and Mpongwe had been collecting much of the revenue in the area.

in Ngabwe District was a newly created District and remote.

The Council adopted the approach of massive sensitisation in public health matters before embarking on enforcement.

This resulted in an Adverse variance of K17,350.


The Commercial venture was only operationalised in March 2022, after registering the Enterprise with PACRA.

The Council had planned to offload plots 180 (125 small holding,15 commercial and 40 medium cost) totaling K940,000 in the year under review which was not achieved.

This was as a result of financial constraints which made the Council delay to pay for the Numbering of plots.
National Support Local Government Equalisation Fund 8,280,000 8,160,311 (119,689) The adverse variance was as a result of deductions for union fees at the Source of funding of the Local Government Equalisation funds (LGEF).

Other Grants 300,000 51,005 (248,995) The Ministry of Local Government and Rural Development disbursed this fund depending on the availability of resources at its disposal.
8 9 10 Constituency Development Fund 1,600,000 1,600,000 - Sub Total Total 10,180,000 9,811,316 (368,684) 12,569,123 10,367,095 (2,202,028) 423 The Committee was informed that the Council had registered an enterprise with PACRA to carry out commercial ventures in financial and hospitality services and cattle for beef farming.

The enterprise operated profitably which resulted in profit share contribution of K46,000 to the District Fund Account in the Financial Year Ended 31st December, 2022.
The Council resolved under Minutes No.

OC/35/09/2022 to incorporate Ward Development Committees (WDCs) in revenue mobilisation, in order to improve on efficiency and reduce resistance from paying of levies to the Council.

The Council had also reduced the handling of cash in revenue collection points through the introduction of banking agency service and mobile money services through the established enterprise.
Clients could deposit the payments through these services and obtain a receipt from the cashier.

The Council further engaged the Ministry of Local Government and Rural Development and Provincial Administration to help resolve the boundary disputes.

The payment for the numbering of plots was done on 14th July, 2022.

The Council would continue to innovate in order to widen the revenue base and in turn provide quality services to the residents of Ngabwe.
Committee’s Observations and Recommendations The Committee expresses concern at the boundary dispute in Chief Mwinuna’s Chiefdom, reported to be affecting the collection of levies.

The Committee also expresses concern at the delay by the Council to put measures in place to augment revenue collection.

On this regard, the Committee urges the Accounting Authority to follow up the matter of the boundary dispute and ensure that it is addressed without delay.
The Committee also urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee further urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

b.

Operations - Failure to Prepare an Integrated Development Plan It was submitted that the Council did not have the IDP as at the end of 31st December, 2021.
This was as a result of limited resources to fund the activities.

Formulation of the Integrated Development Plan had commenced, in line with the Urban and Regional Planning Act, No.

3 of 2015 and activities carried out thus far towards the formulation of the IDP were as follows:     a Council resolution under Minute No.
OC/19/04/2022 was passed to initiate the planning process of an IDP; stakeholders and the public were notified of the Council’s intention to initiate the planning process, through the print media; an IDP team was formulated and subsequently the planning programme and budget were formulated and submitted to the Council as well as Central Province Planning Authority (CPPA) for approval and consideration, respectively; the Council received funding on 29th August, 2022 amounting to K200,000 from the Ministry of Local Government and Rural Development to aid the preparations of the IDP; 424   public and stakeholder consultations had been carried out to collect information pertaining to core issues in the district, and information from sectors had been collected and reviewed.
The draft planning survey and issues Report had been prepared and submitted to the office of the Provincial Planner for review.

the Council had commenced preparation of the development framework and selected members of the IDP team would be attending an orientation workshop on the preparation of the development framework before the final draft could be completed and submitted for review.
It was also submitted that the planning programme clearly outlining tasks and responsible persons had been prepared and submitted to the Council and Provincial Planning.

The planning programme would guide the formulation process and act as a means of verification to ensure that tasks were carried out according to schedule.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the process of IDP formulation and ensure that it is operationalised without delay.
The Committee will await a progress report on the matter.

c.  Accounting for revenue Failure to Collect Revenue from Successful Plot Applicants It was submitted that this was a debt accumulated as a result of the plots successfully offered to applicants in 2018 and 2019.

The debt collection process was initiated in 2021, which resulted in the total collection of K69,330, as at 31st December, 2021.
The poor response was attributed to successful applicants who expressed change of interest in the plots offered to them.

The Council exhausted the debt collection process from reminders through to demand notices which were issued to all the defaulting clients.

The Council resolved to repossess the plots from defaulters and offer them to interested clients, through advert, after approval from the Council.
The Council would ensure that plots offered were promptly paid for and repossessions for defaulters were concluded timely.

Committee’s Observations and Recommendations The Committee expresses concern at the failure to collect revenue form the plots.

The Committee, therefore, urges the Council to conduct due diligence when awarding plots to would be developers to avoid undue delay in the development of the properties.
The also urges that the plots are quickly offered to other would be developers without delay.

The Committee will await a progress report on the matter.

d.  Management of Payroll and Other Staff Related Matters Failure to Confirm Staff It was submitted that at the time of the audit, the staff where yet to be confirmed.

The Committee was informed that the Council appraised the staff and forwarded the matters to the Local 425 Government Services Commission for action on 21st September, 2021.
The officers were confirmed on 1st November, 2022 by Local Government Service Commission.

The Local Government Service Commission had delegated some of its functions to the Local Authority through the established of Human Resources Management Committee.

This would ensure timely confirmations of staff.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to provide supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

e.  Management of Assets Failure to avail Title Deeds The Accounting Authority submitted that the four parcels of land on which Chishimu Market, Lualaba office and the VIP toilets were located, was tradition land.

The parcel of land on which houses were located was part of the surveyed land in the township.

It was yet to be put on title deed.


Chishimu Market and VIP toilets, as well as Lualaba office and VIP offices were still on traditional land.

The Council had initiated the process to obtain title deeds for the parcel of land where the Government was constructing housing infrastructure for the District.

The Invitation to Treat where obtained from the Ministry of Lands and Natural Resources were pending payment for the title deeds to be processed.
The payment for invoices on the Invitation to Treat (ITT) was scheduled to done by the end of June 2023.

The Council would ensure that all properties owned by the Council were promptly put on title.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to provide supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

f. i.
f. i.

Management of Constituency Development Fund Completion of Lwamala Health Post and Staff House and construction of 2 double VIP toilets - Delayed Completion It was submitted that the Council had engaged a local contractor, Both stone contractor and General Maintenance at a labour only contract price of K20,000 on 14th May, 2021, with the completion period of three months.
However, after working for two and half months, the contractor disappeared from site without trace and without notification of the client(Council).

426 However, this was an election period and the contractor was given allowance of being off site during the voting period.

On 14th August, 2021, the twenty-eight days of terminating the contract started counting until when the contract was terminated on 12th September, 2021.
However, as the rainy season was approaching, the Council could not engage another contractor as the road to Lwamala was impassable, in the rainy season.

During the same period Tonlex Contractor was engaged by the Ministry of Local Government and Rural development to execute 55km of road works that covered sections from the Kafue River to Lwamala and from Chisangwa Roundabout to Mulalashi.

In addition, RDA was also financed to execute some spot improvements on the Kabwe – Ngabwe Road main road.
However, the funds were not enough to even cutter for critical worse sections.

The road to the site got impassable until after the rainy season.

Further, the site was located across the Lwamala stream and the stream only dried up two months after the end of the rainy season.

The procurement of a new contractor commenced after the stream dried up and the new Contractor, Kadoli General Dealers Hardware and Suppliers Limited, signed the contract on 13th October, 2022.
The contract period for all the works was four weeks.

The contractor mobilised and completed the construction works.

Kadoli General Dealers Hardware and Suppliers Limited was engaged by the Council to complete the project.

The project had since been completed and awaited handover and commissioning.
To alleviate the problem of Kabwe – Ngabwe main road being cut during rainy season, the Minister approved, on 6th October, 2022, an allocation of K5 million, under the 2022 CDF allocation to be used on spot improvement of Kabwe - Ngabwe road, and works were under way.

To avoid future delaying of completion of projects, the Council resorted to manage projects on a full contract basis as opposed to labour based.
Projects would closely be monitored as the Council had also benefited from the monitoring vehicle under CDF.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to provide supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Completion of Chishimu Health post and staff house and construction of 2 double VIP toilets - Delayed Completion It was submitted that the Council had engaged a local contractor, Bothstone contractor and General Maintenance at a labour only contract Price of K20,000, on 20th January, 2021, up to the 20th April, 2021.

However, the contractor could not mobilise until May, 2021.
However, after working for two and half months, the contractor disappeared from site without trace and without 427 notification of the client (Council) despite warnings.

However, this was an election period and the contractor was given allowance of being off site during the voting period.

On 14th August, 2021, the twenty-eight days of terminating the contract started counting until when the contract was terminated on 12th September, 2021.
However, as the rainy session approached, the Council could not engage another contractor as roads to Chishimu become practically impassable.

During the same period GNM Contractor was engaged by the Ministry of Local Government and Rural Development to execute 18km of road works from Nsengwa – Chishimu.

The contractor only executed 10km of clearing and grabbing.

In addition, RDA was also financed to execute some spot improvements on the Kabwe – Ngabwe Road main road.
However, the funds were not enough to even cutter for critical worse sections.

The road to site got impassable until the end of the rainy season.

Further, the site was located in the Lukanga Swamp area and where there was a lot of ponding of water on the make shift roads that lead to the site in the rainy season.

The procurement of a new contractor commenced after the rainy season.

Ntanga Suppliers and Solutions Limited, signed the contract on 13th October, 2022.
The contract period for all the works was four weeks.

The contractor mobilised and completed the construction works.

Ntanga Suppliers and Solutions Limited was engaged by the Council to complete the project.

The Project had since been completed and awaited handover and commissioning.

Furthermore, the Minister approved an allocation of K5 million under the 2022 CDF allocation to be used on spot improvement of Kabwe - Ngabwe road, and works were under way.
To avoid future delaying of completion of projects, management resorted to manage Projects on a full contract basis as opposed to labour based.

Projects would closely be monitored as the Council had also benefited from the monitoring vehicle, under CDF.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to provide supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

g. i.
g. i.

Management of Liabilities Failure to Remit Statutory Obligations It was submitted that the Council had not remitted a historical debt in statutory obligations amounting to K10,826,464 due to financial constraints as a result of the limited revenue base.

The Council was committed to meeting its existing statutory obligations as they fell due.
In the financial year from 1st January, 2022 to 31st December, 2022, the Council paid a total amount of K2,966,880 to ZRA and K472,783 to NAPSA, as at 31st December, 2022.

Of the K2,966,880 paid to ZRA, K2,795,531 was the matching grant received from the Ministry of Local Government and Rural Development and K171,348.20 was paid from Local Funds.

428 The Council was making payments for existing Statutory obligations as they fell due and also filling returns timely to avoid accumulation of penalties.
In order to expand the existing limited revenue base, the Council registered an Enterprise (Ngabwe Town Council Enterprise) with PACRA which was offering hospitality service, Financial Services and cattle for beef and beef products.

The Council Enterprise operated profitably in the period 1st April to 31st December, 2022, which resulted in the contribution of K46,000 in profits to the District Fund account for operations.
The Council had, with the help of the Local Impact USAID, worked on updating the Revenue Database in order to enhance efficiency in revenue collection.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that outstanding statutory obligations are paid as they formed part of the employee’s Conditions of Service and in violation other pieces of legislation, regarding the payment of taxes.
The Committee also urges that supporting documents be provided to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Failure to Settle Staff Obligations It was submitted that the Council had three retirees who were stilled owed K3,053,641 as at 31st December, 2021.

This was attributed to the financial constraint, as a result of limited revenue base.
The Council had paid a Total of K60,000 towards the terminal benefits in the year ending 31st December, 2022.

With the measures put in place to enhance revenue collection, the Council had included an amount of K550,000 in its 2023 budget for terminal benefits.

In order to expand the limited revenue base, the Council registered an Enterprise (Ngabwe Town Council Enterprise) with PACRA which was offering hospitality service, financial services and cattle for beef and beef products.
The Council enterprise operated profitably in the period 1st April to 31st December, 2022, which resulted in the contribution K46,000 in profits to the District Fund account for operations.

The Council had, with the help of Local Impact USAID, worked on updating the revenue database in order to enhance efficiency in revenue collection.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to provide supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

429 Nsama Town Council Paragraph 55 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following.

a.
a.

Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totalling K13,212,785 against which amounts totaling K11,316,896 were received and generated resulting in a negative variance of K1,895,889.

See table 1 below.

Table 18: Budget and Income Source of Funds N o.
Locally Generated 1 Local taxes 2 Fees and Charges 3 Licences 4 Levies 5 Permits 6 Other receipts 7 Commercial Venture Sub total National Support Budget Income K K Variance K 7,175 21,790 1,056,017 388,725 9,500 931,902 19,265 120,000 48,000 2,206,474 897,404 2,194 427,103 2,250 32,747 37,210 (14,615) (667,292) (7,306) (504,799) (17,015) (87,253) (10,790) (1,309,070) 8 Local Government 9,106,311 8,638,893 (467,418) Equalisation Fund 9 Constituency Development 1,600,000 1,630,599 30,599 Fund 10 Other Grants Sub-total 300,000 11,006,311 10,419,492 150,000 (150,000) (586,819) Total 13,212,785 11,316,896 (1,895,889) 430 In addition, funds amounting to K1,953123 were brought forward from the previous year bringing the total funds available to K13,849,012 during the period under review.
Management Response Local Taxes The failure by the Council to collect the local taxes in full as budgeted was due to the fact that Nsama Town Council was not a rating authority for it to be collecting property rates.

The Council only collects Personal Levy which was charged on employees in the district of Nsama twice a year.

There was a deficit of K14,615 because it was anticipated that the Council would be granted the rating authority.
The Council engaged the Government Valuation Department and the Ministry of Local Government and Rural Development for the Council to commerce the process for the preparation of the valuation roll.

The Council had commenced preparations and was working with Kaputa Town Council in the preparation of updating the valuation roll and would continue to engage the Rating Tribunal under the Ministry of Local Government and Rural Development to grant Nsama Town Council rating authority status.
Further, the Council had developed a roadmap for the process of producing the valuation roll so that it could start collecting property rates.

Fees and Charges The failure to collect fees and charges in full as budgeted was due to poor turnout of applicants for the plots.

The Council only collected K388,725 against the budgeted amount of K1,056,017.

The Council took the following actions: i. ii.

iii.

iv.
the Council re-advertised the plots at the reduced plot premium; The Council further engaged the Ministry of Lands and Natural Resources, to use Land Development Funds amounting to K1,737,429.75, for opening up of 35km access roads in Nsama Township Central Business District (CBD); the Council had engaged Zambia National Service (ZNS) to do access roads as a way of attracting applicants as per BOQ from ZNS; and the electrification of the District had added value for more settlers to come to Nsama District.
Licenses It was submitted that COVID-19 pandemic adversely affected liquor businesses which led the Council failing to collect license fees.

It was submitted that the COVID-19 restrictions were relaxed and the Council re-advertised licensing of businesses again.

Levies Collection of Fish levy was affected because some traders deviated and used other routes which were away from the barrier, avoiding paying levies at the main Council barrier.
The fish barn which ran for three months from December to 1st March contributed to the collection of budgeted fish levy, negatively.

431 It was submitted that the construction of a barrier point at a strategic place at Sefya, where vehicles carrying fish could not avoid the payment, was done.
(Council barrier house) (female and Male Toilets for the barrier) As a way of increasing levies collection, the Council was working with communities in sustaining action and results and engaged Ward Development Committees to help collect Council levies as demonstrated by signing of the memorandum of understandings (MOU) starting with five wards out of the seventeen.

Permits The Council collected opaque beer Permits, Health permits, Herbalist permits and Extension of business Hours permits.
The Council under collected on permits because of the effect of COVID-19 pandemic which affected most business houses.

After the COVID-19 pandemic restrictions were relaxed, the Council re-engaged business houses for the need to pay the permits to the Council through community meetings.

(Community meeting) The Council would continue to engage business houses for the need to pay business permits as in the picture above.
Other receipts On other receipts, the Council budgeted to Collect timber levy, hire of Tipper Truck and Council hall.

The under collection was due to low business activities in the year under review because of the second wave of COVID-19 pandemic.

432 After the COVID-19 pandemic restrictions were relaxed, the Council re-engaged business houses and individuals to continue to hire the above mentioned facilities.
Commercial venture The Commercial venture of the Council consisted of the Bar, Restaurant and the Guest House.

At the time of the audit only the bar and restaurant were operating .The Guest house was not fully operational because part of the infrastructure continued to be used as Council offices which adversely affected the maximisation of income under Council commercial venture.

The Council started operating from new offices as a way of allowing the Council to maximise on its revenue collection.
(Outside view) (Inside view) Further, the Council started to renovate the Guest House to improve the revenue base for the Council and the renovation was at 70 percent.

(Renovation of the Council Guest House) In continuing to operate, the Council commercial venture would be renovated in accordance with the best business practices so as to maximise Council income.
To ensure that the Council Guest House was fully renovated, the Council had allocated K1,100,000 to complete the renovation of the Council Guest House in the year 2023.

433 Local Government Equalisation Fund The variance was caused by deductions at source by the Ministry of Local Government and Rural Development .The deductions at source were for LASF, ZULAWU and Audit fees.

The Council continued to abide by guidelines on the administration of Local Government Equalisation Fund.
The Council would continue to engage the Ministry to increase the Local Government Equalisation Fund as it was not adequate at gross to meet Salaries, Councilors allowances and other obligations.

The Council only received K918,988.45 after deductions and required an extra K300,000 to operate well.

Other Grants The negative variance on other grants was due to non-receipt of the budgeted amount in full from Ministry of Local Government and Rural Development.
The Council would continue to rely on the funding from the Ministry of Finance and National Planning and Ministry of Local Government and Rural Development and any other grants from the said Ministries.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that stipulated measures regarding revenue streams are actualised without delay.

The Committee will await a progress report on the matter.

b.
b.

Operational Matters - Failure to Develop Integrated Development Plan The Council did not develop the Integrated Development Plan (IDP) due to lack of funds, as the cost of developing an Integrated Development Plan (IDP) was high.

The Ministry of Local Government and Rural Development was written to for assistance and the funding amounting to K200,000 was released.
Invitation letter was sent to the Provincial Department of Physical Planning in Kasama and the process of formulating an Integrated Development Plan (IDP) was in progress.

The Team from the province came to the district of Nsama to orient the members over the Integrated Development Plan (IDP).

The orientation meeting was held from 06th February to 08 February 2023.
The planning programme and budget had been approved by the IDP team from Lusaka, Ministry of Local Government and Rural Development and Provincial Team who monitored the district to ascertain the status.

The district is undertaking Planning Surveys and preparing the Issues Report.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that an IDP is prepared and operationalised without delay.

The Committee will await a progress report on the matter.
c. Management of Payroll and Other Staff Related Matters - Failure to Fill Vacant Positions It was submitted that the mandate to employ and deploy was vested in the Local Government Service Commission.

The Council only received staff that was deployed to it.

The Council engaged Local Government Service Commission on the vacant positions.

The Local Government Service Commission had since deployed the Deputy Council Secretary, Deputy Council Treasurer and the Chief Human Resource Officer.
For the remaining positions the Council had an established Human Resources Management Committee in place to fill the vacant positions, which were already advertised and were at selection stage.

434 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

d. Management of Constituency Development Fund i.


Construction of Kampinda Police Post – Delayed Completion The delay in the completion of the construction of Kampinda Police Post was due to under budgeting of the project.

The completion of the Kampinda Police Post would be done in 2023 and an amount totaling to K450,000 had been allocated to this project in the 2023 CDF approved budget.

The Council would endeavor in future to allocate enough funds to projects so that they were completed in time.
In addition, the Council had also built a staff house as a way to operationalise the police post.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

e. Management of the Local Government Equalisation Fund i.
Failure to Reimburse Borrowings It was submitted that the Council borrowed K130,000 from the Council’s Capital Account due to liquidity challenges and the meeting was mandatory to facilitate the training and orientation of Councillors and Council Head of departments in Mpika.

The Council had paid K30,000 towards K130,000.


The council would continue to abide by the guidelines on the administration of Local Government Equalisation Funds, that 20 percent of the Fund be utilised on committed capital projects and the Council would ensure that the liquidation of the all amount borrowed was reimbursed by 31st December, 2023.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.

Rehabilitation of Council Staff House – Delayed Completion The project was under budgeted which adversely affected the completion of the project.
The project has since been completed and was being used as sub offices for Council officers in Nsumbu area so as to improve on the service delivery system of the Council.

435 (Depilated staff house) (Renovated staff house used as Nsumbu sub office) Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.
iii.

Delayed Completion of the Supply and Installation of Solar Power and Water Supply Systems at The Guest House It was submitted that the Borehole was frequently breaking down after installation resulting in the decision to equip it with an Indian mark II hand pump.

The pump collapsed in the process of upgrading resulting in the contractor works outstanding relating to plumbing works on the supply and installation of the water system at the time of the audit.
A new borehole had been done and equipped by the contractor supplying water to the Council Guest House and the community which was nearby as in the picture below.

(New drilled borehole) The Council had made arrangements to equip the Sustainable Operation and Maintenance Project (SOMAP) shop with spares meant for boreholes.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

f. Management of Liabilities i.

Failure to Remit Statutory Obligations It was submitted that the Failure by the Council to settle the Statutory Obligations was due to liquidity problems that the Council faced.

The Council had committed to liquidate the historical debt by ensuring that the monthly contribution was paid as well as the arrears on time.

Management would ensure that the statutory obligations were settled as and when due.
436 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of statutory obligations in line with the law and workers Conditions of Service.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Failure to Settle Staff Obligations ii.


Failure by the Council to settle the staff obligations was due to liquidity problems that the Council faced.

The Council had come up with a payment plan on liquidation of salary arrears and as at 28th February, 2023, K311,657.04 had been paid, leaving the balance of K45,694.96.

It was submitted that NHIMA, Madison life and Settling in allowances had been cleared.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of staff obligations in line with the law and workers Conditions of Service.

The Committee also urges that supporting documents be submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Nyimba Town Council Paragraph 56 Budget and Income During the period under review the Council had budgeted to receive grants from the Ministry of Local Government and Rural Development and to collect locally generated income from various sources in amounts totaling K21,745,435, out of which amounts totaling K19,336,469 were received and generated, resulting in a negative variance of K2,408,966.

See table 1 below.

Table 1: Budget and Income No.
Source of Income Local Taxes Fees and Charges Licenses Levies Permits Commercial Venture Other Income Sub Total National Support Local Government Equalisation Fund 9 Budget K Income K Variance K 1,315,923 3,700,029 158,000 1,140,900 171,100 96,000 4,707,669 11,289,621 1,092,752 2,036,789 25,470 961,779 238,279 19,961 4,935,777 9,310,807 (223,171) (1,663,240) (132,530) (179,121) 67,179 (76,039) 228,108 (1,978,814) 8,255,814 8,080,662 (175,152) 10 Grants in Lieu of Rates 600,000 11 Constituency Development Fund 1,600,000 Sub Total Total Income 10,455,814 21,745,435 345,000 1,600,000 10,025,662 19,336,469 (255,000) - (430,152) (2,408,966) 437 In addition, funds amounting to K2,855,009 were brought forward from the previous year to K22,191,478.
As at 31st December, 2021, bringing amountsK19,113,280 had been spent leaving a balance of K3,078,198.

total funds available the Management Response The Accounting Authority submitted that the Council did not collect the budgeted amount because some property owners operating in the tourism industry and other businesses were adversely affected by the outbreak of COVID-19.
The Committee was informed that the Council engaged the court bailiffs to enhance the collection of local taxes on defaulting clients, as tabulated on the next page.

438 No.
Source Income of Budget K Income K Variance K Outstanding Amount Amount Collected as 31st December, at 2022 Remarks 1 Local Taxes 1,315,923 1,092,752 -223,171 223,171 222,698 2 Fees Charges and 3,700,029 2,036,789 -1,663,240 3 Licenses 158,000 25,470 -132,530 4 5 6 7 Levies 1,140,900 961,779 -179,121 171,100 Permits Commercial Venture Other Income 4,707,669 Sub Total 96,000 National 238,279 67,179 19,961 -76,039 4,935,777 11,289,621 9,310,807 228,108 -1,978,814 Five lodges had since paid in the year 2022.
The court bailiffs were engaged to collect rates.

Poor response for plot applications during the year under review.

Livestock ban in 2021 due to East Coast Fever Disease, which affected the whole Eastern Province.

1,663,240 69,550 Withdraw of Herocean’s billboards in 2021. to Chief Ndake did not give consent commence issuance of occupancy licenses in Ndake chiefdom in 2021.

Low turn out to register the fire arms.

Most businesses closed due to the COVID- 19 pandemic.
The operations at Council motel were affected by the COVID-19 pandemic.
132,530 179,121 67,179 76,039 228,108 1,978,814 439 9 10 11 Support Local Government Equalization Fund Grants in Lieu of Rates Constituency Development Fund Sub Total Total Income 8,255,814 8,080,662 -175,152 600,000 345,000 -255,000 1,600,000 1,600,000 - 175,152 255,000 10,455,814 10,025,662 -430,152 430,152 21,745,435 19,336,469 -2,408,966 2,408,966 292,248 The amount was deducted at source by the Ministry of Local and Rural Development for ZULAWU, Fire Services Union of Zambia (FIRESUZ), Zambia Congress of Trade Unions (ZCTU) 440 Committee’s Observations and Recommendations The Committee expresses concern at the low collection of revenue by the Council, during the period under review.
The Committee notes with dismay that income streams such as levies; and fee and charges under-performed when the Council had other avenues such as collection of personal levies and re-advertising and revising of plot premiums, respectively.

The Committee, therefore, urges the Accounting Authority to ensure that robust revenue collection measures are put in place to augment the collections.
The Committee also urges the Accounting Authority re-engage the traditional leadership on the collection of licenses in the Ndake Chiefdom, without delay.

The Committee will await a progress report on the matter.

Accounting for Revenue -Failure to Collect Plot Premiums The Accounting Authority submitted that the Council sent demand notices to the applicants as a reminder for them to promptly pay.

The Council has since managed to collect the remaining K35,600 as tabulated below.
Table: Collected Plot Premium as at 31st December 2022 SN Details 1 2 Martin Mbewe Sylvester Miti Bupe Chilufwa Tinana Womani Brian Miluti Mwala Mwala Thomas Manda Remmy Kapundula Total Property Number NYI/80566/157 NYI/80566/135 Outstanding Amount 10,000 1,000 Amount Collected as at 31st December 2022 10,000 1,000 YI/LN80566/104 YI/LN80566/107 NYI/80566/158 NYI/LN77225/35 NYI/80566/520 NYI/80566/99 3,000 6,500 6,500 1,800 2,500 4,300 3,000 6,500 6,500 1,800 2,500 4,300 35,600 35,600 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that robust revenue collection measures are put in place to augment the collections.
However, the Committee resolves to close the matter subject to audit verification.

b.

Management of Assets - Failure to Obtain Title Deeds The Accounting Authority submitted that the Council did not obtain title deeds from the Ministry of Lands and Natural Resources due to lack of survey diagrams.

The Committee was informed that the Council paid K21,425.18 to the Ministry of Lands and Natural Resources, on 12th December, 2018 for twelve offer letters.
The Council also wrote to the Ministry of Lands and Natural Resources, on 1st August 2022 to follow up on the progress with regard to processing the title deeds.

The status was as tabulated below.
S/N Name of Property Plot Number Amount Paid Status 1 2 3 4 Open Space New Civic Centre Old Council Houses Civic Centre NYI 445 NYI 422 NYI 420 NYI 421 441 2,119.80 2,119.80 2,119.80 2,119.80 Offer Letter Offer Letter Offer Letter Offer Letter Council House Open Space Old Council House Council Motel Old Council House Bus Station Open Space Old Council House NYI 448 NYI 446 NYI 441 NYI 1602 NYI 444 NYI 417 NYI 447 NYI 439 Total 1,116.69 2,119.80 1,116.69 2,119.80 1,116.69 2,119.80 2,119.80 1,116.69 21,425.18 Offer Letter Offer Letter Offer Letter Offer Letter Offer Letter Offer Letter Offer Letter Offer Letter Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council only made follow up on the matter, after the audit process.
In view of this, the Committee observes the Accounting Authority was only reacting to the audit process.

In this regard, the Committee urges the Accounting Authority to be proactive and enhance the internal controls so that such matters are identified and addressed timely.

The Committee also urges the Accounting Authority to ensure that survey diagrams are obtained and the Ministry of Lands and Natural Resources engaged on the matter, without delay.
The Committee will await a progress report on the matter.

c. Management of Payroll and Other Staff Related Matters i.

Over Employment of Staff The Accounting Authority submitted that The Service Commission Act, No.

10 0f 2016 and the Statutory Instrument No.105 of 2020, mandated the Local Government Service Commission to handle Division I, II and III categories of employees of local authorities, in terms of recruitment, transfers, separations and disciplinary matters, among other functions.
The Committee was informed that the affected officers were employed by the Local Government Service Commission who were responsible for recruitment of Division I, II and III category of employees.

The Committee was also informed that the Council had since written to the Local Government Service Commission to transfer excess staff to the needy councils.
Committee’s Observations and Recommendations The Committee observes with concern the over employment of officers, which it observes puts pressure on the limited resources mobilised for use, to deliver municipal services, by the Council.

In this regard, the Committee urges the Accounting Authority to follow up the matter with the service Commission so that the affected officers are redeployed without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Employees Without Requisite Qualifications The Accounting Authority submitted that the Service Commissions Act, No.

10 of 2016 and the Statutory Instrument No.

105 of 2020 mandated the Local Government Service Commission to handle Division I, II and III categories of employees of local authorities in terms of recruitment, transfers, separations and disciplinary matters, among other functions.
The Committee was informed that the affected officers were employed by the Local Government Service Commission who were responsible for recruitment of Division I, II and III category of employees.

442 Committee’s Observations and Recommendations The Committee finds the employment of staff without requisite qualifications unfortunate and unacceptable, especially that the affected officers were reportedly employed by the Local Government Service Commission.
In view of this, the Committee urges the Accounting Authority to engage the Commission and have the affected officers regraded accordingly.

The Committee will await a progress report on the matter.

iii.

Employment of Staff Without Authority The Accounting Authority submitted that the officers were recruited as an intervention to curb the spread of COVID-19.
The Committee was informed that Council management presented the matter to the ordinary council meeting for approval, under Minute Number FHRGP/158/10/19 and thereafter wrote to the Ministry of Local Government and Rural Development for authority, on 25th August, 2020, to employ the workers.

Committee’s Observations and Recommendations The Committee expresses displeasure at the gloss violation of employment regulations, by the Council, with impunity.
In view of this, the Committee strongly cautions the Accounting Authority to desist from the practice and always ensure adherence to the regulations.

The Committee also observes that the supporting documents could have been availed to the auditors at the time of the audit; and therefore, urges the Accounting Authority to the audit process seriously to avoid the occurrence of such queries.

However, the Committee resolves to close the matter subject to audit verification.
Management of Constituency Development Fund Failure to Implement Approved Projects d. i.

The Accounting Authority submitted that the Council failed to implement the approved 2021 CDF projects due to the following reasons: i. ii.

iii.

iv.
iii.

iv.

v. unavailability of CDF Committee in 2021; late disbursement of funds which was done on 1st October, 2021; late approval of the 2021 CDF projects by the Ministry of Local Government and Rural Development which was only done on 10th March, 2022; lengthy procurement procedures; and delayed clearance of contracts by the Secretary to the Treasury and Attorney General received on 21st October, 2022.
The Committee was informed that the implementation status of the 2021 approved projects was as tabulated below.

443 No.
Constituenc y Project Name Date of Project 1 Nyimba 2 Nyimba Grading of Daniel Village Road Constructio n of Bridge Solomo Village a at Approval 07.12.2020 Dateof Funding Projec t Period Delay ed Mont hs 18.08.2020 24 Amount Amount Allocated K Spent date(2023) to K Reason for the Delay Action Taken Status Balance To date(2023 ) K 349,614 337,243 12,371 Grading had completed been 100 percent Completed of Breakdown Council the which grader was supposed to undertake the grading works 01.10.2021 13 225,512 10.03.2022 199,270.56 26,241.44  Unavailabi of Constructio n had been completed 100 percent Completed of lity CDF Committee in 2021.
Late disbursem ent funds which was only done on 1stOctober, 2021.

Late approval   444 and 2021 of CDF projects by the Ministry of Local Governme nt Rural Developm ent which was only done on 10th March, 2022.

Delayed clearance of contracts by Secretary to Treasury and Attorney General, received on October, 2022.

21st the the  445 3 Nyimba Completion of 1x3 CRB at Ndake Day Secondary School 01.10.2021 13 370,795 168,266 10.03.2022 202,529  Unavailabi of lity CDF Committee in 2021.
Constructio n works on going 75 percent Completed  Late of disbursem ent funds which was only done 1st on October, 2021,  Late approval of 2021CDF projects by the Ministry of Local Governme nt and RuralDeve lopment which was only done 10th on March, 2022.

 Delayed 446 the the clearance of contracts by Secretary to Treasury and Attorney General, only received on October, 2022.

 Unavailabi of 21st lity CDF Committee in 2021.

 Late of disbursem ent funds which was only done 1st on October, 2021.
 Late approval of 2021 100 percent Compleed Constructio works n had since been completed 4 Nyimba Rehabilitati on of 1x3 CRB at Ng’ambwa Primary School 01.10.2021 13 192,666 10.03.2022 77,673.70 114,992.30 447 and CDF projects by the Ministry of Local Governme nt Rural Developm ent which was only on done 10th March 2022.

 Delayed clearance of contracts by Secretary to Treasury and Attorney General, only received on October, 2022.
21st the the 448 5 Nyimba Constructio n of 1x2 CRB at Beulani Community School 01.10.2021 13 386,773 10.03.2022 117,993.00 268,780  Unavailabi of lity CDF Committee in 2021.

 Late of disbursem ent funds which was only done 1st on October, 2021 Late approval of 2021 CDF projects by the 449 Constructio n still in progress 70 percent Completed  and Ministry of Local Governme nt Rural Developm ent which was only done on 10th March, 2022.
 Delayed clearance of contracts by Secretary to Treasury and Attorney General, only received on October, 2022.

21st the the 6 Nyimba Constructio n of semi- detached staff house 01.10.2021 13 289,254 10.03.2022 - 289,254  Unavailabi of lity CDF Committee Constructio works n still in progress 40 percent Completed 450 at Kalulu Primary School in 2021.

 Late of disbursem ent funds which was done on 1st October, 2021.
 Late and 2021 approval of CDF projects by the Ministry of Local Governme nt Rural Developm ent which was only done on 10th March 2022.

 Delayed clearance of contracts by Secretary the 451 the to Treasury and Attorney General received on October, 2022.
21st Total 1,814,614 900,446.26 914,167.74 452 See pictures below Graded road at Daniel Village Constructed Bridge at Solomon Village 453 Ongoing works at Kalulu Primary School-Semi-detached Staff House Completed Ng’ambwa Primary School-1x 3 Classroom block 454 Ongoing works-Beulani Community School,1x2 Classroom block Ongoing works-Ndake Day Secondary School,1x3 Classroom block 455 Committee’s Observations and Recommendations The Committee bemoans the delayed implementation of the projects by the Council and urges the Accounting Officer to ensure that all the pending projects are completed without any further delay.
The Committee will await a progress report on the matter.

Management of Liabilities - Failure to Remit Statutory and Other Obligations f. The Accounting Authority submitted that the Council failed to remit statutory and other obligations due to low revenue base.

The Council actually had been struggling to raise K269,000 to meet just the net salaries for employees every month.
The Committee was informed that the Council had engaged the statutory creditors and other organisations on the liquidation of liabilities through other means such as debt swap, payment plans and tax amnesty.

The Committee was also informed that the Council benefited K769,040 matching grant from the ministry of Finance and National Planning towards payment of PAYE tax arrears.

Further, the Council had made some payment towards the liquidation of arrears, as tabulated below.
See table below 456 1,420,943.5 5 2,690,310.4 6 No.
Institution Balance as at Obligation s for 2021 Cumulative Payments Balance Outstanding Amount Paid Balance 01.01.2021 K Total K K K as at 31.12.2021 K at as 31.12.2022 K as at 31.12.2021 K 1 ZRA(PAYE) 1,100,000 1,144,984 2,244,984 55,000 2,189,984 769,040.45 NAPSA 1,919,232 787,722 2,706,953 - 2,706,953 16,642.54 LASF 502,437 105,153 607,590 360,774 246,816 41,781.84 205,034.16 FIRESUZ - 6,700 6,700 2,034 4,666 4,666 - ZULAWU - 72,543 72,543 17,758 NHIMA - 98,034 98,034 8,176 54,785 19,673 35,112 89,858 48,444.55 41,413.45 Funeral Scheme Total - 29,709 29,709 4,126 25,583 22,187.80 25,583 3,521,669 2,244,845 5,766,513 447,868 5,318,645 922,436 4,396,209 457 Committee’s Observations and Recommendations The Committee expresses displeasure at the failure by the Council to meet statutory and other obligation for the employees.
The Committee observes that the Council was doing very little to broaden its revenue base, thereby, affecting its capacity to settle outstanding obligations.

In this regard, the Committee urges the Accounting Authority to ensure that the outstanding obligations are settled without any further delay.

The Committee also urges the Accounting Officer to put revenue broadening measures in place in order to improve the financial strength of the Council.

The Committee will await a progress report on the matter.
Rufunsa Town Council Paragraph 57 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K16,966,600 against which amounts totaling K12,564,935 were received and generated resulting in a negative variance of K4,401,665.
See table below.

458 Table 1: Budget and Income No.
Sources of Funds Locally Generated Local Taxes Fees and Charges Licences Levies Permits Other Income Sub Total Budget K 26,634 2,801,254 310,622 508,600 69,361 2,872,000 6,588,471 National Support Local Equalisation Fund (LGEF) Government 8,478,129 Income K Variance K 23,766 905,220 59,339 268,985 91,858 1,117,925 2,467,093 (2,868) (1,896,034) (251,283) (239,615) 22,497 (1,754,075) (4,121,378) 8,367,842 (110,287) 10 Grants in Lieu of Rates 11 Constituency Development 300,000 1,600,000 130,000 1,600,000 (170,000) - Fund (CDF) Sub Total 10,378,129 10,097,842 (280,287) Total Income 16,966,600 12,564,935 (4,401,665) In addition, funds amounting to K2,681,069 were brought forward from the previous year 2020 bringing the total funds available to K15,246,004.
As at 31st December 2021, amounts totaling K13,134,046 had been spent leaving a balance of K2,111,958.

Management Response Budget and Income Local taxes The Council projected to collect K26,634 from Personal Levy but only K23,766 was collected resulting into variance of K2,868.

The Council did not reach its far flung areas to fully collect its projection because of transport challenge resulting from regular breakdown of motor vehicles.
In order to enhance revenue collection, the Council had managed to train WDCs on revenue collection in all the twelve wards of Rufunsa District.

In addition, the Council had also approved the procurement of revenue collection vehicle.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges that supporting documents be availed to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

459 Fees and Charges The income budgeted under Fees and Charges was K2,801,254 and collected K905,220, leaving a balance of K1,896,034.

The negative performance under fees and charges was due to the following reasons: Building Inspections fees; the Council projected to collect K12,800 from this vote.
However, during the period under review K10,000 was collected giving a negative variance of K1,800.

The under-collection was because the Building Inspector had resigned during the period under review.

The LGSC had since filled the vacant position of Building Inspector and it was expected that the vote would perform better as the District was growing.

Plan Scrutiny fees; the Council projected to collect K32,800 from this vote but collected K15,998, leaving a balance of K16,803.
The Council did not receive any further plans for scrutiny during the period under review to fully actualise the projected figure.

The Council intensified the sensitisation to would be developers and the development control exercise was conducted.

Change of premises use; The Council projected to collect K40,000 but nothing was collected because no applications were received during the period under review.
The Council realised that this income was not collectable and was not provided for in the subsequent budgets.

Container/Ntemba Fees; The Council projected to collect K10,000 but nothing was collected because most of these structures were upgraded to shops that qualified to pay for retail (business) levy.

The Council collected this revenue under levies.


Rental/Lease of Council Properties; The Council projected to collect K6,000 from rentals at Shikabeta Council Guest House but only collected K3,576 leaving a balance of K2,424.

The variance was as a result of tenants who vacated the premises during the period under review.

The Council had since offered the premises to a new tenant.
Application form fees; The Council projected to collect K350,500 from application fees from the proposed Sinjela satellite town plots.

Only K40,400 was collected leaving a balance of K310,100 because of the challenges with the settlers at the proposed site.

The Council had since resolved the matters surrounding the delay and the vote was actualised in the subsequent budget.
Sketch Plan; The Council projected to collect K150,140 from sketch plan fees but did not collect due to the resignation of the building inspector since he was the one specialised in preparing the sketch plans.

The Local Government Service Commission had since employed the Buildings Inspector who prepared the sketch plans.

460 Search fees; The Council projected to collect K8,000 from search fees but did not collect because it did not receive any client seeking this service during the period under review.
The Council had intensified sensitisations on services through WDCs orientations.

Market Fees; The Council projected to collect K396,000 from market fees but only collected K20,584 leaving uncollected balance of K375,416.

During the period under review, the Council encountered a number of challenges ranging from COVID-19 which meant that business was negatively affected, transport challenge due to regular breakdown of vehicles and the low number of revenue collectors.
The Council had since received one revenue collector and in addition WDCs had been trained to work with the Council in enhancing revenue collection.

Parking fees; The Council projected to collect K160,499 from parking fees but no collection was actualised because the Council did not complete the trucking bay.
Since the district was striving to enhance the revenue base, a truck parking bay would be a lucrative source of revenue for the Council but the cost of investment was high hence the need for central Government support through special grant which had been sought.

The Council had since constructed a borehole at the site and a proposal to lobby for funds to construct the truck in bay was being formulated.
Bus station; The Council projected to collect K48,000 from bus station fees but only collected K8,460 leaving a balance of K39,534.

The under performance was as a result of COVID-19 pandemic which saw a decline in various business activities.

The Council intensified sensitisation on COVID-19 preventive measures so that communities continue undertaking their various economic activities.
Affidavit fees; The Council projected to collect K6,000 from affidavit fees but did not collect anything from the vote because no client during the period under review came through to seek this service.

The Council had intensified sensitisations on services through WDCs orientations.

Hire of Chairs; The Council projected to collect K10,000 from Hire of chairs but did not collect anything from the vote because no client during the period under review came through to seek this service.
The Council had intensified sensitisations on services through WDCs orientations.

Refuse Disposal Fees; The Council projected to collect K4,860 from Refuse Disposal Fees but did not collect anything from the vote because the Council did not actualise the process of installation of waste bins from which the fee was to be collected.

The Council had managed to install the waste bins at the proposed locations.
Notice of marriage; The Council projected to collect K4,860 from Refuse Disposal Fees but did not collect anything from the vote because the Council did not actualise the process of installation of waste bins from which the fee was to be collected.

The Council had intensified 461 sensitisations on services in the community.
Meat Inspection fees; The Council projected to collect K2,105 from Meat Inspection Fees but did not collect anything from the vote because the Council was faced with a challenge of transport to reach slaughter slabs in the District.

The Council had reviewed the subsequent budgets and ensured that non-performing votes were removed from the budget.
Registration of clubs and Societies; The Council projected to collect K1,000 from Club registration but instead collected above projected by K3,182 due to the citizens’ anticipation of benefits from the CDF funding.

The Council had reviewed the subsequent budgets by ensuring that this vote was adjusted upwards anticipating more clubs to be registered as many beneficiaries were showing interest in the CDF.
Farm produce levy; The Council projected to collect K40,200 from farm produce levy but instead collected K59,488 giving a positive variance of K19,288.

This was due to measures put in place to capture farmers at the checkpoints.

The Council had reviewed the subsequent budgets by ensuring that this vote adjusted upwards anticipating more farm produce as many residents were engaging agricultural activities.
Illegal Parking of Vehicles; The Council projected to collect K20,265 from illegal parking of vehicles targeted at Luangwa bridge and Chimunsanya market but instead collected nothing because of the challenge of transport due to non availability of running utility motor vehicles.

The Council had made a provision for a utility motor vehicle that would be dedicated to revenue collection in the 2023 budget.
Billboards and banners; The Council projected to collect K30,150 from billboards and banners but collected K25,921.10 resulting in a negative variance of K4,229.

This was because no additional billboards or banners were erected during the period under review.

The Council expected more billboards due to an increase in the economic activities in the district and the vote had been increased to K41,204 in the 2023 budget.
Lease of Council Transport; The Council projected to collect K55,000 from Hire of the Council Tractor.

However, the Council under collected by K47,318.

The Council tractor in question had broken down during the period under review and could not be hired out.

The Council had since repaired the tractor.

Penalty fee; The Council projected to collect K60,795 from penalty fees but only collected K900 resulting in under collection of K59,895.
This was due to the fact that the Council could not manage to conduct inspections of business premises due to lack of transport.

The Council projected to enhance the performance through a provision to procure a motor vehicle.

Conversion Fees; The Council projected to collect K416,309 from conversion fees.

However, the Council collected 409,400 giving a negative variance of K6,909.

The Council had no control on the number of applicants for conversion of customary land to leasehold tenure.
However, management would be prudent as possible in subsequent budgets.

462 the IDP Programme Conversion; The Council projected implementation of Integrated Development Programs (IDP) but only collected K90,000 leaving a variance of 114,871.
These programs included the following interventions: to collect K204,871 from a. b. c. d. e. f. g. construction of an engineering depot; establishment of the Block Making Plant; establishment of the metal fabrication workshop; construction of an events hall in Chinyunyu; renovation of old Council Lodges in Shikabeta and Luangwa; construction of additional nine residential housing units; and erection of more barrier gates to capture illegal charcoal transporters in Mwachilele and Kalombe.
However, the IDP had not yet been approved and therefore non of the above listed interventions were implemented.

The K90,000 which was indicated as a collection under this vote was a miss-posting and the amount had since been corrected and recognised as conversion fees in the 2021 financial statements.

The Council in collaboration with the Lusaka Province Planning Authority (LPPA) was in the process of finalising the IDP for Rufunsa District.
Other Fees and Charges; The Council projected to collect K454,060 from other fees and charges.

However, only 56,973.24 was collected giving a negative variance of K397,087.

The variance was as a result of the failure by the Council to conclude the process for the Local Area Plan in Sinjela.

The Council had completed the process for the creation of the Sinjela Local Area Plan and the plots were on offer.
Committee’s Observations and Recommendations The Committee expresses concern at the inconsistency of the submission and the supporting evidence rendered before it, regarding the Building Inspector and the failure to collect rentals on the Council properties.

The Committee, therefore, strongly cautions the Accounting Authority against submitting inconsistent information before it.

The Committee also urges that supporting documents be availed to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Licences It was submitted that the query arose because the Council estimated to collect K310,622 but only collected K59,339 resulting in a negative variance of K251,283.

The under collection was mainly affected by the COVID-19 pandemic which saw main businesses declining, low number of revenue collectors and luck of motor vehicles.
The Council would engage more revenue collectors through the established human resources committees and engage members of the Ward Developments Committees (WDC) in the District to assist in collecting revenue from their wards.

463 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.
The Committee also urges that supporting documents be availed to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Levies The Council collected K268,985 against the budgeted amount of K508,600 causing a negative variance of K239,615.

The under collection was mainly affected by the COVID-19 pandemic which saw main businesses declining, low number of revenue collectors and lack of motor vehicles.
Further, the Council’s major income had been Charcoal levy which had been affected negatively due to the ban on indiscriminate cutting of trees.

The Council would engage more revenue collectors through the established Human Resources Committees and engage members of the Ward Developments Committees (WDC) in the District to assist in collecting revenue from their wards.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be availed to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Permits The Council collected K91,858 against the budgeted amount of K69,361 resulting into variance of K22,497.
The Council had raised its target under this vote in the subsequent budgets since the Fire and Health inspectorate section was fully functional.

Other Income (Charges) The Council collected K1,117,925 against the budgeted amount of K2,827,000 causing a negative variance of K1,754,075.

The reason for the under-performance was a result of a delay in finishing the process for the creation of the Sinjela Local Area Plan.
The Council had completed the process and was able to collect plot premiums from applicants.

Further, the vote had also been removed from other income and recognised under Fee’s and Charges in the 2021 audited financial statements as advised by the auditors.

Committee’s Observations and Recommendations The Committee will await a progress report on the matter.
National Support and Grant in lieu of rates The Council estimated to receive K300,000 during the period under review but only received K130,000 resulting in a negative variance of K170,000.

464 Since this income source was dependent on availability of ministerial funding, the Council shall continue to undertake quarterly budget reviews and make follow up with the Ministry of Local Government and Rural Development (MLGRD).
Committee’s Observations and Recommendations The Committee will await a progress report on the matter.

Local Government Equalisation Fund (LGEF) The Council estimated to receive K8,478,129 during the period under review but only received K8,367,842 resulting in a negative variance of K110,287.

The Ministry funded the Local Authority in full, however, the variance arose from the deductions at source.

Among others the deductions at source included LASF, ZULAWU and FireSUZ.
Reconciliations had been made and the deductions at source taken into account.

The Council had resolved to continue pursuing alternative sources of revenue to avoid dependence on traditional sources of revenue such as the Local Government Equalisation Fund.

Committee’s Observations and Recommendations The Committee will await a progress report on the matter.
Operational Matters Lack of an Integrated Development Plan (IDP) The Council submitted a draft Rufunsa Integrated Development Plan (RIDP) in 2021 to the Lusaka Province Planning Authority (LPPA) and received comments from the planning authority and the Ministry of Local Government and Rural Development.

The Council was advised to realign the document to the prescribed table of content and the document was aligned to the 8th National Development Plan (8NDP).
The draft RIDP had since been adopted by the Ordinary Council on 27th December, 2022 under minute number RTC/009/12/2022.

The adopted draft plan was submitted to the LPPA on 5th January, 2023.

Further, in accordance to section 40 of the Urban and Regional Planning Act, No.3 of 2015, a notice of public inspection of the draft RIDP for 2022-2031 was published in the local tabloids and was running until 9th March, 2023.
After the 9th March, 2023, a final copy of the RIDP incorporating all stakeholder concerns would be submitted to MLGRD through LPPA for approval.

The Council would ensure that all operational documents were formulated, submitted for approval and put into operation.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Environmental Management An Environmental Project Brief (EPB) was prepared and submitted to ZEMA for the approval of the dumpsite of the proposed site and issued Rufunsa Town Council a quotation to pay statutory fees amounting to K12,999.90.

The payment of the statutory fees had since been made.

465 With respect to compacting of waste, the Local Authority, did not have equipment to dig and bury the waste.
However, the Council through Ward Development Committee (WDCs) had made proposals to procure necessary equipment through the 2023 Constituency Development Funds.

The fencing of the dumpsite would be considered in the supplementary budget.

The Council had since erected warning signs at the dumpsite.

The Council would ensure that the provisions of the Environmental Management Act, No.

12 of 2011, the Environmental Management (Licensing) Regulations Statutory Instrument No.
112 of 2013 and Solid Waste Regulation and Management Act, No.20 of 2018 were adhered to in Solid Waste Management in the District.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges the Accounting Authority to ensure that the dumpsite is designated without delay.

The Committee will await a progress report on the matter.
Management of Payroll and Other Staff Related Matters - Failure to fill vacant positions At the time of the audit, the Council was awaiting action on the vacancies appearing in the submitted staff returns which also contained the vacancy reports.

The Local Authority was mandated to submit vacancy reports and staff returns to the Local Government Service Commission (LGSC) and were appropriate.
The LGSC appointed or transferred staff to the Council as provided for under Article 228 (2) of the Constitution of Zambia Act, No.

2 of 2016.

The Council had since been submitting these reports, accordingly.

The cited positions had since been filled and in addition, a Senior Buildings Inspector and a Social Economic Planner had also been deployed.

The Council would continue to engage the Commission on positions that were key to service delivery.
466 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee resolves to close the matter subject to audit verification.

Management of Assets - Lack of Title Deeds It was submitted that the Council was still in the process of obtaining title for its properties.

The ten medium cost residential council properties and the Civic Centre.
The properties were located within Rufunsa Township which was numbered and surveyed.

The Ordinary Council, at a sitting held on 12th April, 2019, resolved under Minute no.

PWDRE/270/04/2019, to recommend the properties for title.

However, the stands in question were located in an area that had challenges with the layout number as the Ministry of Lands and Natural Resources were unable to process properties in the location.
The office of the Regional Surveyor had been engaged to provide the correct layout number in the township.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be availed to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Rufunsa Council Lodge The Ordinary Council in a meeting held on 12th August, 2020 resolved to approve the creation of special lodge under minute number the Rufunsa Council SPWDRESS/02/08/2020 and the letter recommending the creation and numbering of Rufunsa Council Lodge had since been lodged with the Lusaka Province Planning Authority (LPPA).

The Council would ensure that all its acquired properties obtained certificates of title.
residential plot for Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents be availed to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Management of Local Government Equalisation Fund - Failure to complete the Guest House It was submitted as set out below.

a.
a.

Phase one of the project comprising of four rooms, a kitchen, restaurant, bar and a conference hall had since been completed and ready for use.

The Council had since 467 written to the MLGRD seeking permission to engage staff to work at the facility and was in the process of procuring equipment for the rooms, bar and restaurant.

b.

The conference hall was equipped and fully functional.
The Council had resolved to undertake all its projects using full contracts to avoid delays associated with labour based projects.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Management of Constituency Development Fund Failure to Implement Approved Projects 1x2 classroom block at Kalombe Primary School in Kabuyu ward.

It was submitted as set out below: a.

The project was executed without any extensions, however, the delay was attributed to the approval and procurement process, capacity of contractor and delays in community mobilisation.

The project had since been completed and handed over to the Council.

1x3 classroom block rehabilitation at Namanongo Primary School b.
The project delayed due to approval and procurement process and capacity of the contractor.

The Council granted one extension to allow the project to be completed.

The project had since been completed.

468 Semi-detached staff house Chiyota Primary School in Nyangwena ward.

c. The project delayed because of the approval and procurement process, community mobilisation of upfront materials and capacity of the local contractor.

The project had since been completed.


Maternity wing at Munyeta Rural Health post in Kabuyu ward.

d. The project delayed because of approval and procurement process as the contractor had financial challenges to mobilise materials and the Council extended the works twice following an application from the contractor.

The project had since been completed.

Low cost staff house at Kazemba Rural Health center.
e. The project had delayed because the contractor had challenges mobilising funds and the community did not provide upfront materials as guided by the appraisal team.

The project was near completion.

The Council would ensure to terminate contracts that were non-performing and offer them to appropriate contractors.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Construction of 1x3 CRB at Kampishi Primary School- Delayed Completion The Council extended the completion of the project following a request from the contractor because of challenges faced in implementing the project due to financial reasons and effects of the COVID-19 pandemic.

A number of extensions were offered by the Council thereby causing a delay of over 16 months.
Management, therefore, decided to terminate the contract and offered it to another local contractor on labour based since the project was nearing completion.

The project had since been completed.

469 Management would intensify monitoring for guaranteed project management improvement.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

Management of Liabilities Failure to Remit Statutory Obligations ZRA The Council had failed to liquidate debt resulting from the ZRA (Paye as You Earn) statutory obligation in the period under review due to inadequate funds.

The Council was bailed out with K5,635,191.92 towards debt clearance by the Central Government thus reducing the debt to K3,440,035.76.
The Council had resolved to remain current on payment of all staff obligations whilst continuously dismantling arrears.

NAPSA The Council had failed to liquidate in full its debt resulting from the NAPSA statutory obligation in the period under review due to inadequate funds.

However, the Council paid its existing debt thus ensuring that no accumulation of debt on NAPSA was incurred.
The Council was current with paying of existing obligations whilst engaging NAPSA to devise a plan to clear the outstanding debt.

The Council had resolved to remain current on payment of all staff obligations whilst continuously dismantling arrears.

And an appeal for legal reforms to wave penalties which formed the bulk of the Indebtedness had been submitted to the Ministry under Solace and LGAZ.
470 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of statutory obligations as failure to do so was in gloss violation of the workers Conditions of Service and the law.

The Committee also urges that supporting documents be availed to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Failure to Settle Staff Obligations The Council had been servicing a staff debt totaling K1,012,436.17 in the period under review but at the time of the audit, the Council still remained with a balance of K820,749 because of inadequate funds.

The Council had since managed to liquidate arrears for all civic leaders and employees in division III and IV.
The Council had since managed to liquidate K713,640.23 of its outstanding debt leaving a balance of K298,795.94, which was budgeted to be cleared in the 2023 budget.

The Council had resolved to remain current on the payment of all staff obligations.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the settlement of staff obligations as failure to do so was in gloss violation of the workers Conditions of Service and the law.
The Committee also urges that supporting documents be availed to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Senanga Town Council Paragraph 58 Audit findings An examination of accounting records maintained at the Council for the financial year ended 31st December 2021 and physical inspection of selected projects revealed the following: Budget and Income (a) During the period under reveal, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in the amounts totaling K14,250,406 against which amounts totaling K16,969,567 were received and generated resulting in a positive variance of K2,719,161.
471 See table 1 below.

No.

Source of funds Budget Income Variance 1.

2.

3.

4.

5.

6.

7.

8.

9.
Locally Generated Local taxes Fees and Charges Licences Levies Permits Commercial Ventures Other Receipts Sub Total National Support Local Government Equalisation Fund Constituency Development Fund Sub Total Total 685,090 2,385,652 216,183 184,700 175,940 146,295 436,940 791,310 262,271 92,914 151,245 249,877 (248,150) (1,594,342) 46,088 (91,786) (24,695) 103,582 484,995 4,278,855 5,213,287 7,197,844 4,728,292 2,918,989 8,371,551 8,171,723 (199,828) 1,600,000 1,600,00 - 9,771,723 9,971,551 14,250,406 16,969,567 (199,828) 2,719,161 In addition, amounts totaling K3,619,732 were brought forward from previous year bringing the total funds available to K20,589,299.
As at 31st December, 2021 amounts totaling K18,339,521 had been spent leaving a balance of K249,778.

Management Response It was submitted that the Council had a positive variance of K2,719,161 on revenue generation although some revenue budget lines did not perform well as follows: Fees and Charges The local authority had planned to generate K2,385,952 but collected K791,310 against its budget.
The larger composition of this budget line was service charges arising from creation and allocation of new plots to the general public but none was collected due to the fact that negotiations in acquisition of land from local leadership could not be completed by the end of the financial year, hence there was no revenue generated from plot premiums.
Levies, Permits and Other Receipts Income levies and permits of the Local Authority was mainly fees from meat (beef) inspections and transportation which was negatively affected due to the ban by the Government on slaughtering cattle and transportation of the products and live-stocks because of the outbreak of animal diseases in the Province.
Local Taxes The Council budgeted to collect K685,090 from Local taxes which was mainly revenue from residential and commercial/industrial property rates, but collected K436,940 resulting in to 63 percent collection efficiency.

This was due to negative mindset on the poundage rate applicable 472 to the old valuation roll as most of the property owners felt it was on the higher side.

The Council had continued to engage traditional leadership for the purpose of acquisition of land for development.
The Council had updated and had been awarded a new valuation roll which had addressed the concern of property owners on the poundage rate.

A good number of additional properties had been captured on the new valuation roll.

This would improve revenue base in terms of property rates as new properties had been captured on the new valuation roll.

The Local Authority would continue to engage property owners on the need for them to pay property rates in order for the Local Authority to provide better services.
The Local Authority would enforce the provision of the Rating Act, No.21 of 2018 and ensure that all outstanding property rates were collected without any further delay.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that measures are put in place to enhance the revenue collection efficiency.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

(b) Operational Matters i.

Lack of Fire Fighting and Prevention Services It was submitted that the Council had no fire brigade unit from the time it was established.

The Committee was informed that the Council engaged neighbouring Councils who had fire rescue and prevention services unit to collaborate to offer technical assistance in the areas of fire fighting and prevention services.
The Council had also budgeted for fire fighting and prevention personnel to be employed as directed by the Ministry of Local Government and Rural development.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to engage the Ministry of Local Government and Rural Development on the matter and ensure that basic fire fighting equipment and attire are procured without delay.

The Committee will await a progress report on the matter.
Environmental Management – Waste Management ii Poor Management of Senanga Dumpsite It was submitted that the dumpsite that was being used was sitting on a piece of traditional land belonging to Barotse Royal Establishment (BRE) and therefore, it could not be secured as negotiations were under way between the local traditional leadership and the local authority to shift to the new site at the time of the audit.
The Committee was informed that the local authority was allocated new land for a dump site along Senanga-Sesheke road and warning signs were put to warn the general public about the 473 existence of the dumping site.

This site was being secured as required by environmental management provisions.

The Council would endeavour to adhere to the requirements and provisions of the Environmental Management Act No.

12 of 2011 as it disposed off waste.


The Council further resolved to procure equipment for compacting the waste with a layer of soil to reduce the exposure of the community to health hazards.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
c. Accounting for Revenue – Missing Receipt Books It was submitted that the two missing general receipt books and two Business levy receipt books were issued to the Revenue collector who failed to retire them.

Before the audit, the internal control system had already detected the failure of the Revenue collector to retire these accountable documents and disciplinary process was instituted against the officer.
The officer had been dismissed from employment by the Local Government Service Commission for failure to account for the two general receipt books and two business levy receipt books.

The Council had tasked a senior finance officer to frequently review accountable documents register to ensure that all accountable documents were regularly and promptly accounted for.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
d. Management of Payroll and Other Staff Related Matters – Irregular Payment – Non-Detrimental Allowances It was submitted that the cited officers who were being paid non-detrimental and outlier allowances were transferred from other Local Authorities and at the time of their reporting, these allowances were reflecting on their last pay statements as presented from the Councils they were transferred from.
The Council wrote to Local Authorities where these officers were transferred from seeking justification on the payments of non-detrimental and outlier allowances.

Due to the period taken to get responses from these Local Authorities, the Council ceased payments of these allowances to the affected officers awaiting justification of the same by the Councils were these officers were transferred from.

The officers were also informed accordingly.


The Council had resolved that such payments would only be made to officers on transfer from other Local Authorities after justification was provided by the sending Councils by way of documentations.

474 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Procurement of Goods and Services e. (i) Unsupported Payments It was submitted that most of the supporting documentations were on file and not attached to the payment vouchers at the time of the audit.

All the supporting documentations had been traced and attached to the payment vouchers.
The Council had streamlined the filling system and a Senior Accounting officer checked all the payment vouchers to ensure that they were adequately supported with relevant documents before and after the completion of any payment.

The internal audit unit was carrying out pre-audit as well as post audit of all the payments to ensure that all payments were adequately supported.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Debt Management Strategy Formulation – Wasteful Expenditure ii It was submitted that at the time of the audit, the Local Authority had not yet formulated the Debt Management Strategy as it was still in the process.
The Local Authority had formulated a strategy on Debt Management and the Debt policy had been put in place.

The Local Authority would adhere to its Debt Management Strategy and policy for it to achieve its goals.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Procurement of Global Positioning System – Wasteful Expenditure (f) Management of Assets (i) It was submitted that the Council had written to the supplier requesting him to provide the activation key.

Furthermore, the Council had engaged a legal counsel to commence legal action against the supplier to compel him to provide the activation key.

The Council would ensure that all purchases made were in line with the principle of value for money by strict adherence to the purchase procedures.
Committee’s Observations and Recommendations The Committee bemoans the failure by the Council to secure activation keys for the procured GPS.

The Committee, therefore, urges the Accounting Authority to put measures in place which will enhance contract management without delay.

The Committee will await a progress report on the matter.

475 Lack of Title Deeds (ii) It was submitted that the Council had commenced the process of obtaining title deeds for its properties.
To this effect it had engaged the department of Physical Planning to survey all its properties.

The Council had submitted the site plans of all Council properties to the Commissioner of Lands for numbering and offers.

The Council would ensure that all Council properties were surveyed and title deeds were obtained.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

(g) Management of Local Government Equalisation Fund – Failure to Maintain Street Lights It was submitted that the ten poles of street lighting were vandalised by unknown persons who stole solar panels and bulbs during night times.

At the time of the audit, these had not been replaced due to court process which was under way as suspects were apprehended and taken to the Courts of law.
The Council still awaited conclusion of the Court process, as the same was the evidence before the courts of law.

The Council through its Police unit had increased night patrols to ensure that no persons vandalised public installations.

The Council had also stepped up education and sensitisation campaigns to the general public on the need and importance of preserving public installations such as street lighting facilities.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
(h) Management of Constituency Development Fund (i) Construction of 1x3 CRB at Sibukali Secondary School – Stalled Works It was submitted that the Contractor engaged could not complete works on time as per schedule due to consecutive slow progress even after several warnings and cautions.

The Council terminated the contract with the contractor as the contractor could not manage to fulfil his obligations despite several warnings and reminders.
The project had since been re-advertised in order to engage another contractor to complete the remaining works.

The Council would in future not engage such contractors to undertake any kind of works.

Furthermore the Council had put up punitive measures to be prescribed in all the contracts to deter unsatisfactory performance of the contractors.
476 Committee’s Observations and Recommendations The Committee bemoans the poor management of the contract and the lack of due care in the identification of contractors.

In this regard, the Committee urges the Accounting Authority to put measures in place to procurement and project management without any further delay.

The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.
(ii) Construction of a Toilet at Suunda Primary school – Stalled Works It was submitted that the Contractor engaged could not complete works on time as per schedule as he took long to commence works after the site was handed over to him.

The Council warned and cautioned the contractor over his slow pace at which the works were progressing.

To this effect the contractor completed the works on 18th November, 2022 and the project had since been handed over to the beneficiaries.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

(iii) Completion of Namukokoba Rural Health Post – Works Stalled It was submitted that the Contractor engaged could not complete works on time as per schedule due to late mobilisation on the part of the contractor on site.
The commencement of works therefore took long after the site was handed over to him.

The contractor continued with slow pace of progress despite several warnings and cautions.

The Council terminated the contract with the contractor following continued unsatisfactory contract performance by the contractor.

Committee’s Observations and Recommendations The Committee bemoans the poor management of the contract and the lack of due care in the identification of contractors.
In this regard, the Committee urges the Accounting Authority to put measures in place to procurement and project management without any further delay.

The Committee also urges that the project must be completed without delay.

The Committee will await a progress report on the matter.
(i) Management of Liabilities Failure to Remit Statutory Obligations It was submitted that the local authority was an unable to remit statutory contributions to respective authorities in full due to difficulties in liquidity during the period under review.

The amount swelled as a result of penalties accumulated on some of the outstanding obligations such as NAPSA.

This made it difficult to meet its statutory obligations.
The local authority had put up a plan to liquidate the statutory obligation debts and to that effect a budget had been set aside in 2023 annual budget.

Furthermore, the local authority had entered into a payment plan with the concerned statutory bodies in order to liquidate the arrears.

As at fourth quarter of 2022, a total amount of K920,381 had been paid towards outstanding statutory obligations as tabulated below.

477 Failure to Statutory Obligations Sn.


Institution 1 2 3 ZRA NAPSA LASF Amount Outstanding (K) 1,887,710 2,521,465 606,643 Amount Paid 697,645 166,937 55,799 Outstanding Balance 1,190,065 2,354,554 550,8444 Total 5,086,249 920,381 4,165,868 The local authority would ensure that it remitted statutory obligations without further delay and revenue generation options were explored to improve the Council’s revenue base.
One of the measures taken was the update of its main valuation roll which had captured more properties for property rates.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the outstanding statutory liabilities are liquidated without delay.

The Committee will await a progress report on the matter.
(ii) Failure to settle Staff Obligations It was submitted that the local authority could not liquidate staff debts as it faced liquidity challenges during the period under review to cope up with the accumulated staff obligations.

It was submitted that a total amount of K1,452,819 had been paid towards staff obligations as shown in the table below.

Settling-in-allowance and leave travel benefits had all been liquidated.

Furthermore, the Council had put up a payment plan to liquidate the remaining balance.
Outstanding staff Obligation Sn.

Type of Balance Amount Paid Outstanding Balance Debt Terminal Benefits Long service Bonus Leave Travel Benefits Settling in Allowance Salaries 499,196 24,960 474,263 299,294 11,500 287,794 309,366 309,366 - 127,553 127,553 - 1,342,024 979,440 362,584 Total 2,577,433 1,452,819 1,124,641 The local authority would ensure that it settled staff obligations without further delay.
To this effect additional revenue generation options were to be explored to improve the Council’s revenue base.

478 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Serenje Town Council Paragraph 59 Audit Findings An examination of accounting and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and to generate funds from various sources in amounts totaling K24,333,021.95 against which amounts totaling K18,588,909.61 were actually received and generated resulting in a negative variance of K5,744,112.34.

See the table 1 below.

Table 1 Budget vs Actual In addition, K6,053,962 was brought forward from the previous year bringing the total funds available to K24,642,872.
As at 31st December, 2021 amounts totaling K18,321,845 had been spent leaving a balance of K6,321,027.

Management Response Local Taxes It was submitted that the under collection of local taxes by K234,584.95 was due to Malcom Moffat College of Education’s inability to pay what it owed (K199,996.15), citing cashflow 479 challenges as the institution was grant - aided by the central Government.
Further, the amounts of K25,958.15 was owed by Henry Mbushi for commercial property rates while K8,630.80 for residential property rates, was owed by various residents.

It was also submitted that demand notices were issued to the affected tax payers.

In addition to that, bulk SMS reminders were sent.

Further, Malcom Moffat College of Education had submitted a payment plan in an attempt to liquidate the debt owed.

It was also submitted that printing and distribution of bills would be done on time.
In addition, the Council would continue sensitising on the importance of paying rates.

Further the Local Authority would engage the court bailiffs to collect what was owed to the Council.
Fees and Charges It was submitted that the under collection of fees and charges amounting K3,467,174 comprised mainly of plot premiums, inspection fees, endorsement fees, application forms and interview fees, which were not collected in 2021, due to low demand from the community, which was mostly attributed to economic meltdown as a result of the COVID-19 pandemic.

Plots were re advertised and K1,152,604 was collected from plot premiums, interview fees and application forms.
It was also submitted that the Council would continue carrying out sensitisation of the business communities and residents on the importance of payment of fees and charges to enable the Council deliver municipal services.

Licences It was submitted that the under collection of licence fees amounting to K206,458 was as a result of low demand by the residents of Serenje district to acquire firearm and ammunition, occupancy licence and resistance to pay dog levy.
Further the Council had inadequate transport to collect revenue from far flung areas.

It was also submitted that the Council had procured a motor vehicle to enable it to collect revenue from far flung areas.

Further, the Council had been assisted to generate a data base on tax/non tax revenue by one of the partners in development (Local Impact) to enable a systematic and efficient collection of revenue.
Furthermore the Council was in the process of engaging Ward Development Committees in all wards to collect revenue on behalf of the Council from far flung areas.

The Council would continue to sensitise the community on the measures so that the Council could continue to provide the required council services.

Levies It was submitted that the under collection of levies amounting K530,035 was due to inadequate transport to collect business levy, bird levy, charcoal levy from far flung areas.
The Committee was informed that the Council procured a motor vehicle to mitigate transport challenge to collect revenue from far flung areas.

Permits It was submitted that the under collection of levies amounting K466,015 was due to inadequate 480 transport to collect fire certificates, health permit, and bird levy from far flung areas.

The Committee was informed that the Council procured a motor vehicle to mitigate transport challenges to collect revenue from far flung areas.
Commercial Venture It was submitted that the under collection on commercial venture, amounting K201,546, was due to renovation works at the Motel.

It was submitted that the Council had completed renovating the Motel rooms and Kitchen which was envisaged to improve Council’s revenue base and collection efficiency.

Further the renovation of the conference facility was budgeted for in the 2022 budget.
Serenje Town Council Motel Outside The Council would continue to source for more income generating ventures such as stone quarry business, mining and truck parking bay in order to increase the revenue base of the Council.

Other Income It was submitted that the under collection on other income amounting to K162,250 was due to low contribution from stakeholders such as mining firms and farmers within the district.
It was submitted that the Council would continue lobbying for funds from Investors in form of Corporate Social Responsibility.

Local Government Equalisation Fund It was submitted that the under receipt of Local Government Equalisation Fund of K376,046.39 was as a result of the deductions at source such as statutory obligation and insurance.

The Council would continue to engage the Ministry of Local Government and Rural Development on the issues of inadequate funding.
Committee’s Observations and Recommendations The Committee expresses displeasure at the failure by the Council to record a positive variance on the locally generated revenues.

The Committee contends that this could be due to lack of mechanisms to enhance revenue collection.

This regard, the Committee urges the Accounting Authority to be proactive and ensure that measures to address the bottlenecks are put in place 481 without fail.
The Committee also urges the Accounting Authority to submit supporting documents on this matter to the Office of the Auditor General for audit verification.

b.

Operational Matters i) Under collection of dog levy It was submitted that the under collection of dog levy amounting K8,200 was due to low compliance by the dog owners.

The Council continued to engage and sensitise the community on the need to register and vaccinate their dogs in order to prevent rabies disease.
Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to collect dog levy.

In this regard, the Committee urges the Council to be proactive and partnership with district veterinary office in order to vaccinate more dogs and increase revenue.

The Committee will await a progress report on the matter.
ii) Failure to control and manage markets It was submitted that the failure to control and manage the seven markets was because the markets were situated in far flung areas such as Kabansa, Chansa, Chibale, to mention just a few.

The Council was in the process of engaging Ward Development Committee to help it to control and manage the markets in far flung areas.
Further the new CDF guidelines to local authorities had emphasised prioritising water and sanitation and other market facilities which would be take advantage of.

Committee’s Observations and Recommendations The Committee expresses concern at the failure by the Council to manage and control management, it was supposed to take advantage and develop markets and serve as source of revenue.
In this regard, the Committee urges the Accounting Authority to ensure that the said markets are developed and connected to water and other basic amenities without delay.

The Committee will await a progress report on the matter.

iii) Failure to provide refuse bays and bins at Markets It was submitted that the failure to provide refuse bays was as a result of financial constraints even though they were budgeted for in the 2021 budgets under locally generated revenue, which was not collected in full.
Arising from the new CDF guidelines that were prioritising garbage management, the Council had engaged and sensitised WDCs to apply for skip truck and bins from 2023 CDF.

Committee’s Observations and Recommendations The Committee expresses concern at the poor management of waste by the Council and the Laissez Faire attitude adopted by the Council, on the matter.

The Committee, therefore, seriously cautions the Accounting Authority on the delayed completion of the project.
In this regard, The Committee urges that supporting documents be availed to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

482 Accounting for Revenue - Failure to collect Revenue c. Rentals, Personal Levy, Plot Premiums and Property Rates It was submitted that the failure to collect revenue amounting K343,480, was due to economic meltdown as a result of the COVID-19 pandemic.
The Committee was informed that the Council had since collected K20,330 from rentals and K25,000 from plot premium.

Further the Council had written to the Ministry of Finance and National Planning for the payment of Personal Levy for all the civil servants in the District amounting to K84,015.

Furthermore the Council had received a payment plan from Malcolm Moffat College of Education for property rates.
Committee’s Observations and Recommendations The Committee expresses displeasure at the failure by the Council to collect revenue.

The Committee contends that this could be due to lack of mechanisms to enhance revenue collection.

This regard, the Committee urges the Accounting Authority to be proactive and ensure that measures to address the bottlenecks are put in place without fail.
The Committee also urges the Accounting Authority to submit supporting documents on this matter to the Office of the Auditor General for audit verification.

Management of Payroll and Other Staff Related Matters Failure to Fill Vacant Positions d. i.

The Accounting Authority submitted that the failure to fill vacant positions was due to the fact that the mandate to recruit and fill vacant positions lied with the Local Government Service Commission.
The Council only received staff recruited and deployed to it by the Local Government Service Commission.

The Committee was informed that the Council had continued to engage the Local Government Service Commission through submission of quarterly staff returns for the Commission to recruit and deploy the Beverage Manager and the Systems Analyst for the smooth running of the Council.
The Local Authority had embarked on the following to boost locally generated revenue, hence to budget for the vacant positions: a. b. c. undertaking a supplementary valuation roll to capture mines, industries and other rateable properties; entering into public private partnership agreements to undertake a stone quarry business in the District; and enter into public private partnership agreements to undertake mining activities in the District.
The Council would continue to engage the Local Government Service Commission to fill the vacant positions with matching resources.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to re-engage the Service Commission on the matter.

The Committee will await a progress report.

483 ii.
483 ii.

Over employment of Staff The Accounting Authority submitted that the over employment of staff was due to the fact that the mandate to recruit and deploy Council staff lied with the Local Government Service Commission.

The Council only received staff recruited and deployed to it by the Local Government Service Commission.

Further the Commission requested information on excess staff which had been submitted and awaited a response from the Commission.
The Council had continued to engage the Local Government Service Commission by submitting staff returns and had also requested that excess staff be transferred.

The Council would continue reconciling its human resource and update staff returns which would be submitted periodically to the Local Government Service Commission for further action.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to re-engage the Service Commission on the matter.
The Committee will await a progress report.

iii.

Employees without Requisite Qualifications It was submitted that the mandate to recruit and deploy qualified Council staff lied with the Local Government Service Commission.

The Council only received staff recruited and deployed to it by the Commission.

The Council had since written to the affected officers to upgrade their qualifications.
Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to re-engage the Service Commission to regrade the affected officers who are not upgrading their qualifications, without delay.

The Committee will await a progress report on the matter.

Failure to confirm staff It was submitted that the mandate to confirm Council staff lied with the Local Government Service Commission, at the time of the audit.
The Council wrote to the Local Government Service Commission for confirmation of officers and as at 17th February, 2023, the Council received thirteen confirmation letters.

Management would continue to engage the Local Government Service Commission on remaining unconfirmed officers to be confirmed.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to re-engage the Service Commission on the matter.

The Committee will await a progress report.


Management of Assets Failure to avail Title Deeds e. i.

The Accounting Authority submitted that the process to acquire the title deeds was underway.

The survey diagrams for six properties had been prepared.

Further the lease agreement 484 documents had been signed and submitted to the Ministry of Lands and Natural Resources for processing of title deeds.
Further, the Council was following up on the remaining eleven properties, some of which were falling on traditional land, others were under litigation and while others were being re-planned by the Provincial Planning Unit.

Management would continue engaging Ministry of Lands and Natural Resources and other stakeholders for issuance of Council title deeds.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that all the cited Council properties are secured with title deeds without any further delay.

The Committee will await a progress report on the matter.

Failure to maintain Markets and Toilets ii.


Ibolelo Market The Accounting Authority submitted that part of the market had collapsed and the market had no running water due to financial constraints to renovate the market under Locally Generated Revenue.

It was submitted that the Borehole had been installed and renovation of the market had been done using the savings from market daily revenue collections.
Ibolelo toilet Borehole installed Ibolelo Toilet The Council would continue carrying out maintenance works on all the markets and toilets within the district.

Further the Council would construct modern markets and toilets within the district using Constituency Development Fund as per new CDF guidelines.

485 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist form taking action after the audit process.
The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

New Market It was submitted that some fittings to the toilets were broken and no running water due to financial constraints to carry out maintenance works under locally general revenue.
Some funds amounting to K17,700 had been reserved through daily market collection fees to renovate the toilet and install the water tank at New Market.

The installation of water was at procurement stage.

The Council would continue carrying out maintenance works on all the markets and toilets within the district.

Further the Council would construct modern markets and toilets within the district using Constituency Development Fund as per new CDF guidelines.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that water installation works are effected and completed without delay.

The Committee will await a progress report on the matter.

Main Market It was submitted that some fittings to the toilets were broken and there was no running water due to financial constraints to carry out maintenance works under locally general revenue.
The Council had plans to construct new toilets at the market and the WDC had since been engaged to apply for the new facilities in accordance to the new CDF guidelines.

The Council would continue ploughing back the daily market fees, for maintenance works on all the markets and toilets within the district.

Further the construction of modern markets and toilets within the district would be carried out using Constituency Development Fund in accordance with the new CDF guidelines.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the defects identified at the toilet are rectified without delay.

The Committee will await a progress report on the matter.

f. Management of Constituency Development Fund - Completion of Nakalengule Health Post and construction 2 No.
double VIP latrines The Accounting Authority submitted that the project was delayed due to community misunderstandings between the community and the contractor, where the community felt that the contractor was underpaying them for the jobs executed on the project.

In the process the contractor wrote to have the contract terminated citing personal problems, including financial challenges.
486 The Council re-advertised the project and awarded the contract to Danken Investments Limited for the period of twelve weeks.

The contractor had applied for the extension of the period.

As at 17th February, 2022, the works done included interior and exterior plastering, glazing, spoon drain, fitting of doors and remaining works to be done included painting inside and outside.

Further the contractor applied for extension of time which was approved.
Nakalengule Health Post Nakalengule Health Post The Council, through the Director of Works would closely supervise the contractor for the remaining works to be completed.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that the project is completed without delay.

The Committee will await a progress report on the matter.

g. i.
g. i.

Management of Liabilities Failure to Remit Statutory Obligation The Accounting Authority submitted that the failure by the Council to pay statutory obligations amounting to K23,457,633.34 was due to financial constraints.
The Council had been making efforts to liquidate some of the debt while the Central Government had come to the Council’s aid by liquidating other debts as in the table below: 487 The Council had put in place a system to ensure that all returns for statutory bodies were submitted and filed before the due date to avoid accumulation of penalties.

Further the Council had embarked on the following to boost local revenue to settle outstanding obligations.
a. b. c. undertaking a supplementary valuation roll to capture smelting plants for Manganese and other rateable properties; entering into public private partnership agreements to undertake a stone quarry business in the District; and enter into public private partnership agreements to undertake Mining activities in the District.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of outstanding liabilities, which was consistent with the workers Conditions of Service and other pieces of legislation.

The Committee will await a progress report on the dismantling of the debt without delay.

Failure to settle Staff Obligations ii.

It was submitted that the failure by the Council to pay staff obligations amounting to K6,079,072.65 was due to financial constraints.
The Council had made the following payments towards liquidation of staff obligations.

488 The Council had put in place a system to ensure that all outstanding staff obligations were liquidated.
Further the Council had embarked on the following to boost local revenue to settle outstanding obligations: a. b. c. undertaking a supplementary valuation roll to capture Mines, industries and other rateable properties; entering into public private partnership agreements to undertake a stone quarry business in the District; and enter into public private partnership agreements to undertake Mining activities in the District.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of staff obligations, which was consistent with the workers Conditions of Service and relevant tax and employment regulations.

The Committee will await a progress report on the dismantling of the debt without delay.
Siwang’andu Town Council Paragraph 60 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December, 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K13,792,716 against which amounts totaling K11,366,888 were received and generated resulting in a negative variance of K2,425,828.
See table 1 below: Table 1: Budget and Income 489 In addition, funds amounting to K2,905,510 were brought forward from the previous year bringing the total funds available to K14,272,398.

Management Response The Accounting Authority submitted as set out below.

Local Taxes 1.

The over collection was as a result of the increase in the personal levy collection from ZAFFICO.

Fees and Charges 2.
Fees and Charges 2.

Mostly fees and charges were land related and despite advertising, the response from the sale of plots was not good resulting in under collection.

Licences 3.

For licenses, most of the shops were still recovering from COVID-19 pandemic effects.

4.

The over collection on levies came from business levies after conducting sensitisation meetings.

Levies Permits 5.

The Council had introduced fire certificates after the establishment of the Fire Section resulting in under collection.
National Support 6.

The Committee was informed that the underfunding was a result of deductions at source by the Ministry of Local Government and Rural Development, from the Local Government Equalisation Fund, such as ZULAWU contributions.

Management Response The Committee was informed that the Council had made adjustments to the budget on plot premiums, fees and charges and other incomes, to align it to what was attainable.

The Budget for 2023 had been reduced by 57 per cent.
The Council would ensuring that only realistic and attainable revenue sources were included in the Budget.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that supporting documents are submitted to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Operation of Markets - Abandoned Market - Kalalantekwe Market b.
The Accounting Authority submitted that the traders abandoned Kalalantekwe Market citing lack of business due to traditional and political interference.

The Council was still engaging traders through political and traditional leaders to go back to Kalalantenkwe Market.

490 Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council was failing to manage the said Market and vending, attributing it to political interference, without supporting evidence.
In this regard, the Committee urges the Council to be proactive and take charge of running the Market and prevent street vending as mandated by the Markets and Bus Station Act, No.

2 of 2007, without fail.

The Committee will await a progress report on the matter.
c. Management of Payroll and Other Staff Related Matters - Failure to Confirm Officers on Probation The Accounting Authority submitted that the confirmation for the officers in question were supposed to be presented to the Local Government Service Commissioners at the sitting in Mpika.

However, the report was not submitted due to rescheduling of the Shiwang’andu Town Council session.
The Council had since re-submitted recommendations for staff confirmation to the LGSC and documentation was available for verification.

Committee’s Observations and Recommendations The Committee finds it unacceptable that officers could be kept waiting for confirmations way beyond the stipulated three months.

In this regard, the Committee urges the Accounting Authority to urgently re-engage the Commission and ensure that the matter is addressed without any further delay.
The Committee will await a progress report on the matter.

d. Accounting for Revenue - Failure to Set Aside and Use 5 per cent of Locally Generated Funds on Wards The Accounting Authority submitted that being an election year, the existing Ward Development Committees (WDCs) were dissolved and the Council was still in the process of forming new WDCs.
It was submitted that every year, 5 per cent from locally generated funds was budgeted for and in the year under review, the Council spent K47,976.04 on the formation of WDCs, and the difference used in the subsequent year.

The Council would ensure that every year, five per cent from locally generated funds was budgeted for as projects and programmes within the main Local Authority budget.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and take the audit process seriously, as this matter could have been resolved at the time of the audit.

The Committee also urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee, however, resolves to close the matter subject to audit verification.

Management of Local Government Equalisation Fund e. i.
The Accounting Authority submitted that the Council regretted spending from Capital Account.

Misapplication of Funds 491 This was due to financial challenges which were faced by the Council.

The Committee was informed that the Council would reimburse the misapplied funds amounting to K223,285 in six equal instalments, effective February 2023.

Committee’s Observations and Recommendations The Committee expresses concern at the violation of the provision of Local Government Act, No.
2 of 2019, regarding the utilisation of 20 per cent of LGEF, with impunity.

The Committee finds this unacceptable especially that the delivery of social services to the Community is hampered.

The Committee, therefore strongly cautions the Accounting Authority to desist from the practice and to ensure that the funds are reimbursed without fail.

The Committee will await a progress report on the matter.

Construction of Ablution Block at Matumbo Dry Port ii.
The Accounting Authority submitted that the initial contract was labour based resulting in poor workmanship.

The labour contract was terminated due to poor workmanship and the Council had taken over the project which was on-going and the septic tank was 90 per cent complete.

Committee’s Observations and Recommendations The Committee finds the delay to complete the works due to poor workmanship unfortunate and questions the adequacy of the procurement systems in place.
The Committee, therefore, urges the Accounting Authority to enhance the procurement systems in place and ensure that the projects are fully implemented without delay.

The Committee will await a progress report on the matter.

Management of Constituency Development Fund Failure to Implement Approved Projects f. i.
The Accounting Authority submitted that the Council regretted having not implemented the projects immediately after they were approved due to geographical terrain and lengthy of the procurement process.
492 The Committee was informed that the status of the projects were as tabulated below; Committee’s Observations and Recommendations The Committee finds the failure by the Council to implement approved projects on time, unfortunate and urges the Accounting Authority to put measures in place to enhance the management of projects at the Council without fail.

The Committee urges that the uncompleted projects must be fully implemented without delay.

The Committee will await a progress report on the matter.
Construction of 1x2 Classroom Block at Mufushi Primary School ii.

The Accounting Authority submitted that the Council regretted having not implemented the project immediately after it was approved.

However, the project had delayed because it was waiting for additional funding through the 2022 CDF allocation.

The Committee was informed that the project had since been completed and documentation was available for verification.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

iii.

Construction of 1x2 Classroom Block at Nabutende Primary School – Delayed Completion The Accounting Authority submitted that the Council regretted having not implemented the projects immediately after it was approved.
However, the initial contract was terminated due to poor workmanship and the contractor being absent from site.

The Committee was informed that the Council had since terminated the contract which would be re-advertised.

493 Committee’s Observations and Recommendations The Committee finds the failure by the Council to implement approved project on time, unfortunate and urges the Accounting Authority to put measures in place to enhance the management of projects at the Council without fail.
The Committee urges that the project be fully implemented without delay.

The Committee will await a progress report on the matter.

Management of Liabilities Failure to Remit Statutory and Other Obligations g. i.

The Accounting Authority submitted that the Council had been operating under liquidity difficulties as it was struggling to meet its financial obligations.
The Council could not even meet its gross salaries and wages obligations for its employees during the period under review due to the limited resources.

The Committee was informed that the Council had budgeted for the preparation of the Valuation Roll in conjunction with Chinsali Municipal Council and also completing the Dry Port at Matumbo area in order to increase Own Source Revenue (OSR).
it was submitted that the Council was managing to pay the gross salaries except for PAYE where an amount of K15,000 was paid on a monthly basis to reduce the debt.

Further the Council was current with remittances to NAPSA, NHIMA, LASF, Funeral Insurance and Union Contributions.
Committee's Observations and Recommendations The Committee observes with concern that the Council had an outstanding debt of statutory and other obligations, in violations of the employees Conditions of Service and other regulations.

In this regard, the Committee urges the Accounting Authority to ensure that measures are put in place to liquidate the outstanding statutory obligations.

The Committee will await a progress report on the matter.

Failure to Settle Staff Obligations ii.


The Accounting Authority submitted that the Council had been operating under liquidity difficulties as it was struggling to meet its financial obligations.

The Council could not even meet its gross salaries and wages obligations for its employees during the period under review due to the limited revenue sources.
The Committee was informed that the Council had budgeted for the preparation of the Valuation Roll in conjunction with Chinsali Municipal Council and also completing the Dry Port at Matumbo Area in order to increase OSR.

Committee's Observations and Recommendations The Committee observes with concern that the Council had an outstanding debt of salary arrears and other obligations, in violations of the employees Conditions of Service.
In this regard, the Committee urges the Accounting Authority to ensure that measures are put in place to liquidate the outstanding salary arrears and other obligations.

The Committee will await a progress report on the matter.
494 Siavonga Town Council Paragraph 61 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: a) Budget and Income During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and to generate funds from various sources in amounts totaling K27,666,022 against which amounts totaling K23,084,851 were received and generated resulting in a negative variance of K4,381,180.
In addition, funds totaling K3,928,731 were brought forward from the previous year bringing the total funds available to K27,013,582.

See table 1 Table 1: Statements of Comparison of Budget and Actual Amounts Management Response It was submitted that the cause for the variance amounting to K4,381,180 on Budget and Income was due to: Local Taxes The Council budgeted to collect K7,090,989 and managed to collect K6,479,147, which resulted in the negative variance of K611,752.
This was due to non-payment of property rates by both commercial and residential leaseholders.

Reason for nonpayment of property rates was due to 495 non availability of reliable transport to enhance revenue collection as well as COVID-19, which affected hotels and lodges in terms of patronage.

Fees and Charges The Council budgeted an amount of K2,857,360 and managed to collect K773,658, resulting in the negative variance of K2,083,702.
This was due to the plan by the Council, to sell plots to the public but did not materialise due to a directive from the Ministry of Lands not to sell land to the public; as well as the negative response by the public regarding payment for plots earlier offered, because the land was not serviced.

Licences The Council budgeted to collect K87,900 and only collected K71,825 resulting in a negative variance of K7,075.
This was attributed to the closure of few business houses within the district such as Bay hotel and Protea boat house.

Levies The Council budgeted to collect K2,682,335 and only collected K2,458,577 which resulted in a negative variance of K223,758.

This was due to unresolved dispute regarding fish levy by Fish companies who proposed for a lower charge.

Permits The Council had a positive variance of K22,430 because of database update as well as formation of Revenue Collection Taskforce.
Commercial Venture Commercial venture (Lake view lodge) collected K184,255, which was above target because of an increase in clientele after renovations.

Other Income The Local Authority budgeted to collect K3,757,999 and only collected K1,386,021.

This resulted in a negative variance of K2,371,978.

This was due to outstanding debts by fish companies because of unresolved disputes over the charges regarding fish levy.

National support The Council budgeted to receive K10,783,788 and received K11,494,188.
This was attributed to receipt of grant in lieu of rates for all Government properties which was not anticipated as it was usually given at the discretion of the Government.

The Accounting Authority submitted that indeed there was an under-collection of revenue for the year under review and the following actions had been taken to improve revenue collection: i. ii.
reviewed the budgeting process to match with the main valuation roll to avoid over estimation as evidenced in the 2022 budget performance were 95 per cent collection efficiency had been achieved; stakeholder engagement, especially fish companies were developing payment plans on how they intended to be paying fish levy to the Council as well as clearing arrears.
This 496 resulted in 95 per cent collection efficiency for the year 2022 as well as reduction in the debtor’s position; updated the database for all the businesses within the District to monitor payments and revenue collection, which resulted in 90 per cent revenue collection from business and fire permits in the year 2022; the Council managed to procure a vehicle for revenue mobilisation; and re-opened the renovated Council lodge in March 2021, that resulted in increased clientele and revenue.

iii.

iv.
iii.

iv.

v. The Council changed its approach in 2022/2023 budget preparation process by only including realistic and achievable budget items forthwith.

Further, the Council would ensure that all budgeted for funds were collected within the financial year.

Committee’s Observations and Recommendations The Committee notes the response and urges the Accounting Authority to be proactive ad desist from taking action after the audit process.
The Committee will await a progress report on the outcome of the measures put in place.

Accounting for Revenue - Failure to recover outstanding debts (Fish Levy) b.

It was submitted that the failure to recover outstanding fish levy debt was as a result of unresolved disputes regarding fish levy by the fish companies who tendered for negotiation to review fish levy charge from K1 to K0.8 per kg due to financial challenges they were facing.
The Committee was informed that fish companies were engaged on case by case basis to offset the fish levy which had accrued before the Council could consider reducing the levy from K1 to K0.8.

The companies where engaged to come up with payment plans to clear off the balances and as at 31st December, 2022, all the fish companies had cleared the arrears.

The Committee was also informed that meetings were held with individual fish companies to discuss way forward regarding fish levy payments.
This resulted in positive feedback for the year 2022 and the council managed to collect 95 per cent budget target; and would strive to continue engaging the fish companies to avoid being in arrears and make payments on time.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
C. Management of Assets - Failure to Claim Insurance The Accounting Authority submitted that the Council had been making follow ups, in writing, with the Ministry of Local Government and Rural Development who were managing the Insurance cover for the fire track.

The Council would continue engaging the Ministry of Local Government and Rural Development regarding the claim from the insurance Company; to have the Fire Engine replaced.
497 Committee’s Observations and Recommendations The Committee finds it unacceptable that the Ministry of Local Government and Rural Development had taken too long to address the insurance matter, regarding the fire track.

In this regard, the Committee urges the Controlling Officer in the Ministry of Local Government to ensure that a lasting solution is found with regard to the fire track, to safeguard life and property.

The Committee will await a progress report on the matter.
Failure to Implement Projects d) Management of Constituency Development Fund i.

The Accounting Authority submitted that the contractors had moved to site and the projects were progressing well.

Further, the delays were as a result of procedural requirements in the procurement process such as obtaining authority from the Director of Finance at the Province and the Attorney General.
It was submitted that the bottlenecks in the procurement processes had been dealt with which had resulted in speedy execution of projects.

The Council remained committed to timely implementation of CDF projects with close supervision.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the projects are completed without delay and submit supporting documents to the Office of the Auditor General for audit verification.
The Committee will await a progress report on the matter.

ii.

Completion of a 1x2 Classroom block at Mundulundulu Community School It was submitted that an insurance company which provided an advance performance bond of the first contractor was engaged to refund the Council and the money was paid back in February, 2023.

A new contractor Corptec Home Services had been engaged to complete the project on labour based contract, at a total cost of K20,470.50.
The Council had ensured that 80 per cent of the materials for the project were available on site and would continue to closely supervise the new contractor to ensure the project was completed on time.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without any further delay and submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
e. i.

Management of liabilities Failure to Remit Statutory Obligations The Accounting Authority submitted that the cause for the query was due to liquidity challenges that the Council faced in the period under review.

It was submitted that the Council was on a monthly basis paying towards the debt stock to the statutory bodies, according to the established time to pay agreements and annual debt liquidation plan as the Council did not have adequate funds to liquidate the whole debt at once.
498 Further, the Council applied for Amnesty from the Zambia Revenue Authority in 2022 and made a total payment of K926,000 towards the debts.

In addition, the Council had managed to be up to date and paid all the arrears with Local Authority Superannuation Fund (LASF) amounting to K229,741 as at 31st December, 2022.
The Council would abide by the time to pay agreements made with the Zambia Revenue Authority and National Pensions Scheme Authority in order to clear the arrears; although this would take a considerable period of time.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Failure to Settle Staff Obligations The Accounting Authority submitted that the Council, despite limitations in the financial resource envelop had managed to pay a total sum of K150,000 in 2022 and management remained committed to offsetting the balance of K538,223 within the year 2023 and was provided for in the 2023 budget.

The Council would continue paying all staff obligations when they fell due, to avoid accruing arrears.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Sinazongwe Town Council Paragraph 62 Audit Findings An examination of financial and other records maintained at the Council for the financial year ended 31st December 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate funds from various sources in amounts totaling K23,611,522 against which amounts totaling K21,959,157 were received and generated resulting in a negative variance of K2,615,741.

See table 1 below.

499 Table 1: Budget and Income No.
Source of Funds Locally Generated Local taxes Fees and Charges Licenses Levies Permits Other Receipts Subtotal Budget K Income K 5,306,299 2,262,070 693,750 4,006,334 291,000 598,000 13,157,453 5,191,794 1,538,794 572,910 2,822,053 147,820 475,029 10,748,400 Variance K (114,505) (723,276) (120,840) (1,184,281) (143,180) (122,971) (2,409,053) Government National Support Local Equalisation Fund Constituency Development Fund Other Grants Subtotal 9,404,069 1,600,000 - 11,004,069 9,410,757 (6,688) 1,600,000 - 200,000 11,210,757 (200,000) (206,688) Total 24,161,522 21,959,157 (2,615,741) In addition, funds amounting to K5,330,124 were brought forward from the previous year bringing the total funds available to K27,289,281 during the period under review.
As at 31st December 2021 amounts totaling K25,419,908 had been spent leaving a balance of K1,869,373.

Management Response Under Collection of Budgeted Revenue Local Taxes The under collections on local taxes of K114,505 was due to residential rate payers that were resisting to pay because their properties were still sitting on the Maamba Collieries Limited title.

The Council had engaged the Mine to have the place re-planned to allow all rates payers have individual titles.
The Council, working with Provincial Physical Planning Department would continue to engage the Mine to make sure this matter was settled amicably.

Fees and Charges – K 723,276 The under collections on fees and charges was due to the post COVID-19 pandemic that continued posing a standstill in operations and business environment.
The Council constituted a Taskforce Team focused on sensitising communities and constantly engaging them on matters affecting them regarding payment of Council fees and charges as it collected revenue.

Management had engaged Ward Development committees and their zonal leaders to conduct community sensitisation meetings on the importance of paying levies to local authorities and to explain developmental projects that were done from local revenues.
500 Licenses, Levies and Other Receipts - K1,571,272 The under collections on Licenses, Levies and Other Receipts was due to the slow business and movement of goods and services experienced when Government restricted movements and operational hours for business houses due to the COVID-19 pandemic.
Management constituted a twelve member Taskforce Team focused on sensitising community and constantly engaging them on matters affecting them regarding payment of Council fees and charges as they collected revenue.

Management had engaged ward development committees and their zonal leaders to conduct community sensitisation meetings on the importance of paying levies to Councils and to explain developmental projects that were done from local revenues.
Committee’s Observations and Recommendations The Committee notes with concern the failure by the Council to collect revenue as projected in the budget.

The Committee, however, urges the Accounting Authority to ensure that the matter of residential payers sitting on Maamba Collieries title deed is addressed without any further delay.

The Committee will await a progress report on the matter.

b.

Operational Matters – Environmental Management – Poor Management of Maamba Dumpsite.
It was submitted that management had managed to cover, compact, fence and label the dumpsite.

The Committee was assured that ZEMA and public health regulations would be adhered to, to avoid such occurrences.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee also urges that supporting documents must be submitted to the Office of the Auditor General for Audit verification.
The Committee will await a progress report on the matter.

i.

Accounting for Revenue – Failure to Collect Revenue from Sale of Residential plots- K55,000.

The failure to collect revenues from the sale of residential plots was due to nonpayment of plot fees by the applicants who were offered plots.

The Committee was informed that reminders to applicants who did not make payments were written and sent to them out of which an amount of K3,500 was realised.
Further, the Council had started the repossession process following the committee resolution, waiting for the adoption by Council.

Management would ensure intensified and timely reminder whenever plots were offered to developers.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for Audit verification.

The Committee will await a progress report on the realisation of the measures as stipulated.
501 c. i.

Management of Payroll and Other Staff Related Matter Failure to Fill Vacant Positions The vacant positions in question were reported to the Local Government Service Commission to be filled in.

On 27th April, 2022, the Council wrote to the Local Government Service Commission to have three key vacant positions filled and positions of District Accountant, Data Entry Officer and Assistant Lands Surveyor had since been filled.
Management would continue engaging the Local Government Service Commission to fill the remaining two positions of Mechanic Workshop Foreman and Roads and Drainages Foreman, out of the queried five vacant positions.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for Audit verification.

The Committee will await a progress report on the matter.
ii Irregular Payments for Officers’ Lodging Bills-K25,230 The payment was based on the 2019 management resolution that was made to cater for the officers temporal (Seven days) accommodation until they got their first salary and managed to secure their accommodation as the area had accommodation challenges.

It was submitted that management started recovering from the affected officers, in January, 2023 and would be fully recovered by June, 2023.
Management immediately abolished the resolution and had since stopped providing temporal accommodation to newly transferred officers.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for Audit verification.

The Committee will await a progress report on the matter.
Management of Assets – Failure to Secure Title Deeds d. It was submitted that for Council properties on state land, it had mainly been attributed to delay by the Office of the Regional Surveyor in Choma who were engaged to survey properties which were sitting on state land.

On traditional land, the delay was due to lack of sitting chiefs as the two Chiefdoms (Chief Mweemba and Sinazongwe) awere still having succession wrangles.
It was submitted that in September, 2022, all the six files for the properties located on state land were submitted to the Ministry of Lands for acquisition of title deeds and had since received three survey diagrams, remaining with three.

The Council was still waiting the remaining survey diagrams and the Invitation to Treat from the Ministry of Lands.

Management would double the efforts in making follow up with the Ministry of Lands to persuade it to expedite the process.
502 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and ensure that supporting documents are submitted to the Office of the Auditor General for Audit verification.

The Committee will await a progress report on the matter.

e. i.
e. i.

Management of Local Government Equalisation Fund Drilling of Boreholes Lot 1 It was submitted that management on 16th December, 2021, wrote to the contractor for remedial works as the works were within defects liability period.

Another follow-up letter was written to the contractor on 25th April, 2022 to work on the defects.
However, as at 15th December 2022, the contractor had not gone back on site, and on 16th December, 2022 the contractor was informed of the engagement of another contractor to work on the defects using the retention component of the contract.

The process to procure a new contractor had commenced and works would commence once the rainy season was over and the sites were accessible.
On the borehole that had high turbidity, an inspection was carried out which confirmed that the water was clear and the community was consuming it.

Management would ensure that contractors were engaged after rain season as the area had challenges with accessibility for drilling boreholes.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that all the defects on the boreholes are rectified without delay.
The Committee also urges that the Council should follow the procurement Procedures to the letter when re-engaging another contractor to work on the boreholes.

The Committee will await a progress report on the matter.

Drilling of Boreholes Lot 2 ii.

The Accounting Authority submitted that the contractor was written to on 25th April, 2022 to go back on site to drill the remaining borehole.
As at 23rd May, 2022 the contractor had not done the work and as such Council started charging liquidated damages and that was followed by the termination of contract on 10th October, 2022.

The process to procure a new contractor had commenced and works would commence once the rainy season was over and the sites were accessible.

Management would ensure that contractors were engaged after rain season as the area had challenges with accessibility for drilling boreholes during rainy season.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that all the defects on the boreholes are rectified without delay.

The Committee also urges that the Council should follow the procurement Procedures to the letter when re-engaging another contractor to work on the boreholes.

The Committee will await a progress report on the matter.

f. i.
f. i.

Management of Constituency Development Fund Delayed Implementation of Approved Projects It was submitted that the delayed implementation of approved projects for 2021 was due to delay in the submission of the proposed projects by the Ward Development Committees (WDCs).

Further, at the time the submissions were made to the Ministry of Local Government and Rural Development, Parliament was already dissolved which implied that there was no Minister to approve the proposed projects.
The delay was also attributed to further delay by the Director of Finance in the clearance of contracts at Provincial Administration.

503 On 22nd September, 2022, the Director of Finance at Provincial Administration guided that projects below K1,000,000 did not require clearance of contracts but procuring entities should use Local purchase orders.

Management implemented the projects which were at various stages of completion and they were expected to be completed by 30th April, 2023.
Management would ensure that Ward Development Committees (WDCs) were urged to be submitting project proposals in time.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

ii.
ii.

Construction of 1x2 Classroom Block at Sichitando Community School It was submitted that this project was on a full-contract, but items such as sand stones and bricks required the Community to contribute.

The outstanding works included; painting both inside and outside, spoon drain, fitting of two doors, flooring, installation of blackboards in both classes, and installation of a grill gate at the main entrance.
It was submitted that the outstanding works highlighted by the auditors such as painting both inside and outside, spoon drain, fitting of two doors, flooring, installation of black boards in both classes, and installation of a grill gate at the main entrance had been completed.

The site was ready for handover and usage.


Management had endeavoured to ensure that adequate funds were allocated for all Constituency Development Fund projects to enable the award of full contracts to avoid requiring communities to contribute upfront materials.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Construction of 1x3 Classroom Block at Chisuku Community School iii.

It was submitted that the project was on a full contract but items such as sand stones and bricks required the Community to contribute.

The outstanding works included; the casting of ring beam and superstructure up to roof level, plastering, and painting, roofing, fitting of doors and window frames, window panes, concrete apron, and drainage.
The outstanding works highlighted by the auditors such as; the casting of ring beam and superstructure up to roof level had been completed.

The pending work was plastering and painting, roofing, fitting of doors and window frames, window panes, concrete apron, and drainage.
The contractor after the extension of time lapsed on 6th October, 2022, requested to be paid for the works done and the contract be terminated due to failure by the community to provide upfront materials on time and an increase in market prices of goods and services.

The final account was prepared and the new contractor had been engaged to do the works for the available funds.

A request would be made to the CDFC as it sat to secure more funds for the remaining works.
504 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the project is completed without delay.

The Committee will await a progress report on the matter.

Construction of 1x3 Classroom Block at Sianyuka Primary School iv.

It was submitted that the project was implemented on a full contract but items such as sand stones and bricks required the Community to contribute.
The outstanding works included; roofing, plastering and painting, fitting of window and door frames, window panes and doors, floor screed, and spoon drain.

It was submitted that the outstanding works highlighted by the auditors such as roofing, plastering, fitting of window and door frames, window panes and doors, floor screed, and spoon drain had been completed.

The project was ready for handover and usage.


Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

g. Management of Liabilities – Failure to Remit Statutory and Other Obligations It was submitted that the failure to remit statutory and other obligations was due to financial challenges in the year under review.
Management had been liquidating the statutory obligations as funds allowed.

The table below showed the obtaining status as at 31st December, 2022.

The Council had started paying current monthly obligations for ZRA, NAPSA and LASF to avoid further accumulation of statutory obligation arrears and Council had also committed itself to be paying a K30,000 against the arrears for NAPSA every month as shown in the table below.

No.
No.

Institution 1 2 3 ZRA NAPSA LASF ZULAWU ZCTU Total Balance 31.12.2021 K 4,909,652 1,640,279 150,458 33,286 10,902 6,744,577 as at Payments To date K 2,700,448.48 86,920.07 150,458 33,286 10,902 3,020,162.55 Balance K 2,209,113.52 1,553,358.93 Nil Nil Nil 3,842,472.45 Management would ensure that paying statutory obligations for current months continued to avoid accumulation of statutory obligation arrears.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to prioritise the payment of outstanding statutory and other obligations, to avoid violating the workers Conditions of Service and other relevant tax and labour regulations.

The Committee will await a progress on the full payment of outstanding liabilities.
505 Vubwi Town Council Paragraph 63 Audit Findings An examination of accounting and other records maintained at the Council for the Financial Year Ended 31st December, 2021 and a physical inspection of selected projects revealed the following: Budget and Income a.
During the period under review, the Council budgeted to receive grants from the Ministry of Local Government and Rural Development and to generate income from various sources in amounts totaling K11,517,940, against which amounts totaling K10,650,847 were received and generated resulting in a negative variance of K867,093.

See table 1 below.
Table 20: Budget and Income No Source of Funds Locally Generated 1 Local taxes 2 Fees and Charges 3 Licences 4 Levies 5 Permits 6 Other Receipts Sub total National Support Budgeted K Income K Variance K 17,010 1,653,563 7,250 45,370 3,600 70,000 1,796,793 12,045 548,498 8,660 83,435 2,440 75,306 730,384 (4,965) (1,105,065) 1,410 38,065 (1,160) 5,306 (1,066,409) 7 Local Government 8,121,147 8,320,463 199,316 Equalisation Fund 8 Constituency Development 1,600,000 1,600,000 - Fund Sub total Total 9,721,147 9,920,463 199,316 11,517,940 10,650,847 (867,093) In addition, amounts totaling K1,986,186 were brought forward from the previous year bringing the total funds available to K12,637,033 during the period under review.
Management Response The Accounting Authority submitted as set out below.

506 i) Fees and Charges The Council had budgeted K1,653,563 and only managed to collect K548,498, leaving a negative variance of K1,105,065, mainly attributed to the negative response from the plot applicants.

ii) Local Taxes The Council had budgeted a total sum of K17,010 from Personal Levy but only collected K12,045, leaving a negative variance of K4,965 due to an error made during the budgeting process.
However, it was later discovered that, based on the database, what was feasible to collect was K12,045.

iii) Permits The Council had budgeted K3,600 and only collected K2,440 leaving a negative variance of K1,160 due to an error made during the budgeting process.

However, it was later discovered using the database that what was feasible to collect was K2,440.
Committee’s Observations and Recommendations The Committee expresses concern at the narrow revenue base of the Council, such that it was unable to collect enough to meet other expenditures and other service to the community.

The Committee observes that the Council was just surviving on national support.

The Committee also observes that the Council was unrealistic in the preparation of budget estimates.
In view of this, the Committee urges the Accounting Authority to be innovative and come up with commercial ventures in order to broaden the source of revenue by the Council and reduce total dependence on national support.

The Committee also urges the Council to ensure that only realistic and ready to meet income generating activities are included in the budget.

The Committee resolves to close the matter subject to audit verification.

Operational Matters - Environmental Management b. iii.
Failure to Operate a Dumpsite The Accounting Authority submitted that the Council did not have land to designate as dumpsite due to unresolved township boundary wrangles.

The Committee was informed that the area identified to be designated as a dumpsite, had been secured, with the engagement of the traditional leadership; and funds totaling K350,000 has been set aside to go towards the management of the dumpsite, in the 2023 budget.
Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council was failing to operate a dumpsite pausing a health risk to the public.

The Committee also finds it unacceptable that due to boundary wrangles, the entire community was at risk of contracting diseases due to lack of dumpsite.

The Committee, therefore, urges the Accounting Authority to expeditiously operationalise the said dumpsite without delay.

The Committee will await a progress report on the matter.
Failure to Provide Waste Receptacles or Refuse Bays iv.

The Accounting Authority submitted that the Council had since constructed a refuse bay at the cost of K30,000; and bought seven waste receptacles, out of the 20 percent capital component of the local Government Equalisation Fund.

507 Committee’s Observations and Recommendations The Committee bemoans the lassie faire attitude by the Council in the management of waste in the district.
The Committee observes with concern that the Council was literally reacting to the audit process on a matter that had a potential to breed diseases in the district.

In this regard, the Committee urges the Accounting Authority to be proactive and desist from the conduct of taking action after the audit process.

However, the Committee resolves to close the matter subject to audit verification.

c. i.
c. i.

Accounting for Revenue Failure to Collect Plot Premiums The Accounting Authority submitted that the Council did not have an approved township boundary and was still operating in a customary land which made it difficult to collect revenue from the plots as developers were skeptical about the security of tenure to their property.
The Committee was informed that the Council together with the Ministry of Local Government and Rural Development were actively engaging the senior traditional leadership for consent to a planned area within the district boundary.

Committee’s Observations and Recommendations The Committee expresses concern that the Council proceeded to advertise and assign pieces of land falling within the chiefdom boundary, which was customary and required the involvement of traditional leadership.
The Committee wonders what motivated the Council to budget for plots which had encumbrances.

In this regard, the Committee urges the Council to expedite and finalise engagements with traditional leadership on the matter, without delay.

The Committee will await a progress report on the matter.

ii.

Failure to Register Dogs The Accounting Authority submitted that the Council erroneously did not budget for dog registration hence failure to register any dog.
The Committee was informed that the Council had since made a budget provision of K40,000, for the activity in 2023.

It was also submitted that the Council would continue to adhere to the provisions of various acts falling under its mandate and would continue to budget for exercises such as dog registration.

The Committee was informed that sensitisation process had started on the need by the dog owners to register and vaccinate their dogs.
Committee’s Observations and Recommendations The Committee finds it unacceptable that the Council, which was struggling with the generation of local revenue could fail to budget for the dog registration activity which was a sure source of revenue.

In this regard, the Committee urges the Council to be proactive and ensure that the dog registration activity is undertaken without any further delay.
The Committee will await a progress report on the matte 508 d. Management of Payroll and Other Staff Related Matters i.

Failure to Fill Vacant Positions The Accounting Authority submitted that the Council had not budgeted for all the positions due to limited funds.

It was submitted that some critical positions such as District Accountant, Assistant Accountant, Assistant Procurement officer and Health inspector had been filled up.
The Committee was informed that the Council would continue engaging the Local Government Service commission and also the Human Resource Management Committee, which had been delegated by the Commission to handle human resource matters, at district level, with effect from 23rd September, 2022, for positions from LGSS13 to Division IV.
Committee’s Observations and Recommendations The Committee finds the failure to fill critical vacant positions unfortunate and urges the Local Government Service Commission to take keen interest and ensure that requisite resources are mobilised and have vacant positions filled up without delay.

The Committee will await a progress report on the matter.

ii.
ii.

Employees without Requisite Qualifications The Accounting Authority submitted that at the time of the officers’ appointment, the qualification they held were appropriate.

The Committee was informed that the affected officers were written to in order to upgrade their qualifications in conformity with the existing required qualifications.
The Accounting Authority also submitted that the Council would continue to screen all the officers to avoid having under qualified staff, from time to time and encourage them to upgrade their qualifications in conformity to the existing standard qualifications.
Committee’s Observations and Recommendations The Committee bemoans the retention of under qualified staff in various positions and expresses concern that this has the potential to compromise on the quality service delivery in the district, by the local authority.

In this regard, the Committee urges the Accounting Authority to develop a funding mechanism to support employees who are willing to upgrade the carriers.
The Committee also urges the Local Government Service Commission to take keen interest and degrade all those officers not willing to go back to school and acquire requisite qualifications.

The Committee will await a progress report on the matter.

Management of Assets – Failure to Secure Title Deeds e. The Committee was informed that the Council had submitted the applications for title deeds to the Ministry of Lands and Natural Resources for the concerned properties.
Committee’s Observations and Recommendations The Committee expresses concern at the delay by the Council to acquire title deeds for its properties, in gloss violation of the provisions of the Public Finance Management Act, No.

1 of 509 2018.

The Committee therefore, urges the Accounting Authority to desist from the practice and put measures in place which will ensure that title deeds are acquired timely, without fail.

The Committee will await a progress report on the matter.
f. Management of Local Government Equalisation Fund i.

Delayed Completion of a Semi-Detached Commercial House The Accounting Authority submitted that the initial contract was terminated on account delayed implementation of the project.

The Committee was informed that a new Contractor was engaged and the project was completed in full awaiting power connection by ZESCO.
Committee’s Observations and Recommendations The Committee observes the poor contract management and lack of robust project monitoring mechanisms at the Council.

In this regard, the Committee urges the Accounting Authority to enhance the procurement processes and monitoring mechanisms at the Council without any further delay.

The Committee will await a progress report on the matter.

ii.
ii.

Delayed Completion of a 1x3 CRB at Changoma Community School The Accounting Authority submitted that the project was funded in phases using the 20 per cent Local Government Equalisation Fund, which made it difficult to complete the works on time.

The Project was funded through the 2022 Constituency Development Fund, following an Application by the Community and had since been completed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and desist from taking action after the audit process.

The Committee, however, resolves to close the matter subject to audit verification.
g. Management of Constituency Development Fund - Delayed Implementation of Approved Projects for 2021 The Accounting Authority submitted that the funding for the projects came late towards the start off the rainy season which made it difficult to undertake the projects because of the poor terrain.

The Committee was informed that the all the 2021 CDF projects have since been completed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to avail supporting evidence to the Office of the Auditor General for audit verification.

The Committee, however, resolves to close the matter subject to audit verification.

h. i.
h. i.

Management of Liabilities Failure to Remit Statutory and Other Obligations The Accounting Authority submitted that Vubwi Town Council was among the grant aided councils in the Country and did not have enough Revenue to address all the obligations.

510 The Committee was informed that the Council had made efforts in reducing the outstanding balances.
A total sum of K20,000 had been paid to Professional Insurance, K78,148.75 to Zambia Revenue Authority and K70,058.20 to NAPSA as at 31st January, 2023, leaving balances as tabulated below.
S/N INSTITUTION BALANCE AS AT 31/12/2021 AMOUNT PAID 1 2 3 Zambia Revenue Authority NAPSA Professional Insurance 1,853,325 96,366 84,822 78,148.75 70,058.20 20,000 AT BALANCE AS 31/01/2023 1,775,176.25 26,307.80 64,822 Committee’s Observations and Recommendations The Committee observes that the Council’s narrow revenue base was a contributing factor to the failure to meet statutory obligations.
In this regard, the Committee urges the Council to be innovative and open up commercial ventures in the district which will augment the income.

The Committee also urges the Council to prioritise the offsetting of outstanding amounts by exploring other means such as debt swap, without delay.

The Committee will await a progress report on the matter.

ii.

Failure to Settle Staff Obligations The Accounting Authority submitted that the Council did not have enough funds to settle staff obligations.
The Committee was informed that the Council had made a huge step by paying K363,960, leaving a balance of K461,503, as at 31st January, 2023.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and put in place measures which will enhance the Council's revenue base, to meet its obligations.

The Committee will await a progress report on the full settlement of the outstanding balance.
Part III TOUR REPORT Report on the Verification Tour by the Committee on Local Government Accounts to Central, Muchinga, Northern and Luapula Provinces The Committee undertook a verification and inspection tour of selected projects in Central, Luapula, Muchinga and Northern Provinces, which had been cited in the Reports of the Auditor General on the Accounts of Local Authorities for the Financial Years Ended 31st December, 2019 and 2020.
The Local Authorities visited and whose projects were cited included the following: i. ii.

iii.

Chisamba Town Council; Kabwe Municipal Council; Kapiri Mposhi Town Council; 511 iv.

Mkushi Town Council; v. Mpika Town Council; vi.

Chinsali Municipal Council; vii.

Isoka Town Council; viii.

Nakonde Town Council; ix.

x. xi.

xii.

Kasama Municipal Council; Mansa Municipal Council; Chipili Town Council; and Samfya Town Council.

The findings of the Committee are set out below.

1.

Chisamba Town Council i.


Delayed construction of Mufunda Bridge The project was still not completed and the contractor was not on site.

The works on the site were affected by the basting of the nearby Mutenga dam.

The Committee was also informed that the Road Development Agency was earmarked to take over the project.
Committee’s Observations and Recommendations The Committee expresses concern that the project was yet to be completed and therefore, urges the Accounting Authority to follow up the matter with the RDA, without delay.

The Committee will await a progress report on the matter.

Kabwe Municipal Council Delayed Completion of Wall fence construction at Katondo BOC Community School.

2. i.

The project was still uncompleted but the contractor was on site to complete the delayed works.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the construction works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.

ii.

Delayed completion of Ablution Block construction at Katondo Primary School.

Painting, plumbing works and glazing had not been done.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the construction works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.

Poor Management of Dumpsite.

iii.

The dumpsite was still poorly managed as it was not fenced and no restricted access; and there were no warning signs found.

iv.

Delayed completion of a 1×3 classroom block at Bwafwano Primary School.
512 Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the dumpsite is properly managed in line with the Solid waste Management regulations.

The Committee also urges that the dumpsite is secured and warning signs displayed without any further delays.

The Committee will await a progress report on the matter.

The project was almost completed with the fitting of chalk and notice boards remaining.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.

v. Delayed Rehabilitation works at Bwacha Police Station.

Painting works at the reception of the police station, were poorly done.

It was observed that there was no surface preparation before painting was done.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to be proactive and enhance project monitoring mechanisms to avoid wastage of resources.

The Committee will await a progress report on the matter.

3. i. Kapiri Mposhi Town Council Failure to Maintain Property- Old Mukuni Tavern The Building was still poorly maintained with cracks on the walls and worn out ceiling board and roof.
The Committee was informed that the Council intended to convert the building into a fire service station.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

Poor management of Dumpsite ii.

The dumpsite was still poorly managed with no fencing and sign posts.
The Committee learnt that the dumpsite was sitting in the forest reserves and the Council was in negotiations with the Ministry of Green Economy to digazette the forest and designate a potion of it as a dumpsite.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the dumpsite is properly managed in line with the Solid waste Management regulations.
The Committee also urges that the dumpsite is secured and warning signs displayed without any further delays.

The Committee will await a progress report on the matter.

513 Mkushi Town Council Poor management of Dumpsite 4. i.

The dumpsite was still poorly managed as it was not fenced and no proper access roads on site.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the dumpsite is properly managed in line with the Solid waste Management regulations.

The Committee also urges that the dumpsite is secured and warning signs displayed without any further delays.

The Committee will await a progress report on the matter.

Mpika Town Council Delayed completion of a 1×3 classroom block at Kaluba Primary School.

5. i.

The window flames and glasses had been fixed.


However, cracks on the floor had not been cured.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.

Delayed completion of a 1×4 classroom block at Mwanfushi Primary School ii.

The project was not completed, as the floor was not done and the doors were not fixed.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.

Delayed completion of a 1×3 classroom block at Kalonje Day School iii.

The project was abandoned and was reportedly handed over to Lavushimanda Town Council after it was created as a district.
It was also submitted that all the unutilised project funds were handed over to Lavushimanda Town Council.

The Committee was informed that the Council had mobilised CDF funds to complete the remaining works.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.
Chinsali Municipal Council Chinsali Bus Station - Project Management 6. i.

The queried plumbing works, flooring and water reticulation had been addressed.

However, the bus station was not open for use as the loading bay was not paved yet.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed and opened to the public, without delay.

The Committee will await a progress report on the matter.

514 7.
514 7.

Isoka Town Council i.

Delayed completion works of an Ablution block at Mwaiseni Area waiting shelter.

The queried doors and glass panes were fitted.

However, the toilet was not yet opened to the public due to the power challenges, needed for water reticulation.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to rectify the remaining works and have the facility opened to the public, without delay.

The Committee will await a progress report on the matter.
Delayed completion works of an Ablution block at Kalungu Dry-port ii.

The matters queried had been addressed, such as installation of geysers, fitting of window flame and exterior painting.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.
Nakonde Town Council Delayed completion of staff house at Ibrahim health Post 8. i.

The project was not yet completed as doors, glass panes; plumbing works had not been done.

Interior and exterior painting was not done.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.

Delayed completion of Market Shelter at Waitwika ii.
The market shelter was still not completed as painting works were on going.

The Committee observed that the pillars were not adequate to handle the weight of the roof.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.

Uncompleted works at Ntatumbila School iii.


The queried works such as fitting of doors and window flames and spoon drain had been addressed.

However, the plumbing works had not been done and questionable basins had been fitted.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.
515 Kasama Municipal Council Delayed completion of Mulobola Health Post 9. i.

The project was still uncompleted and all the works were being redone due to poor workmanship.

The Committee was informed that the project was certified complete and handed over to the Ministry of Health who rejected it due to poor workmanship.

A new contractor was on site to redo the work and the entire floor had been removed.
Committee’s Observations and Recommendations The Committee bemoans the poor project management and lack of supervision by the Council.

In this regard, the Committee urges the Accounting Authority to put measures in place that will enhance project management without delay.

The Committee will await a progress report on the matter.

Uncompleted Ablution Block at Chikumanino Bus Station ii.
The project was abandoned at foundation level and the Council was still repaying a loan procured to build the Ablution block.

Committee’s Observations and Recommendations The Committee bemoans the wastage of resources and urges that the matters surrounding the construction of an ablution block are addressed without delay.

The Committee will await a progress report on the matter.

Delayed Completion of Paul Mambilima Police Post 10.

Mansa Municipal Council i.


The project was abandoned and had developed cracks on the floor that would compromise the structural integrity of the building.

The Contractor had moved on site as the Council still intended to complete the project in its state.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.
Poor management of Kampalala Dumpsite ii.

The dumpsite was still poorly managed as it was not fenced and lacked access roads.

The Committee was informed that the area where the dumpsite was situated belonged to Zambia National Service and the Council had designated another area for a dumpsite.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to ensure that the dumpsite is properly managed in line with the Solid waste Management regulations.
The Committee also urges that the dumpsite is secured and warning signs displayed without any further delays.

The Committee will await a progress report on the matter.

iii.

Lack of waste holding bays at Markets.

516 The skip bins had been procured and placed at all five markets serviced by the Council.

Therefore, the matter had been addressed.

Committee’s Observations and Recommendations The Committee resolves to close that matter.

11.

Chipili Town Council i.


Uncompleted works of the House at Mukanga Agricultural scheme The queried defects had been addressed and the House was occupied.

Committee’s Observations and Recommendations The Committee resolves to close that matter.

ii.

Strong room at Kandakala Primary School The strong room was still uncompleted with doors and windows not fitted and the concrete roofing not done.
The Committee observed that inappropriate steel doors and bars were fitted and needed to be removed and replaced.

Committee’s Observations and Recommendations The Committee urges the Accounting Authority to expedite the works and ensure that the project is completed, without delay.

The Committee will await a progress report on the matter.

Samfya Town Council Management of Liabilities 12. i.
The Committee was informed that Samfya Town Council had entered into an agreement with NAPSA and ZRA to liquidate the outstanding contributions.

With regard to settlement of outstanding staff obligations the Committee was informed that the Council had gone into a debt payment plan with different creditors and was making monthly payments towards the debts.
Committee’s Observations and Recommendations The Committee urges the Accounting Authority to submit supporting documents to the Office of the Auditor General for audit verification.

The Committee will await a progress report on the matter.

CONCLUSION The Committee wishes to pay tribute to all the stakeholders who appeared before it and made both oral and written submissions.

It also wishes to thank you, Madam Speaker for the invaluable guidance throughout the Session.
The Committee also appreciates the services rendered to it by the Office of the Clerk of the National Assembly and his staff.

Tribute also goes to the Office of the Auditor General for undertaking the Audit on Local Authorities which formed the basis for the Committee’s work.

The Committee is confident that the observations and recommendations contained in this report will be favourably considered and fully implemented by the Executive in the interest of the 517 Appendix 1 List of Officials 1.

2.

3.

4.
2.

3.

4.

5.

Mr Charles Haambote, Principal Clerk of Committees (FC) Mrs Doreen N C Mukwanka, Deputy Principal Clerk of Committees (FC) Mr Charles Chishimba, Acting Senior Committee Clerk (FC) Mr Moses Chuba, Committee Clerk Mrs Charity Kabika Muyunda, Administrative Assistant 519